C. When price is too high, people are less willing to purchase the good, so demand is lower when price is higher. (Demand curve is always slopping downwards as a result). As the price is high, producers are more willing to sell their goods (I.e. bonds) which will give them more money per unit good being sold. This will result in Quantity Supplied (Qs) being greater than Quantity Demanded (Qd), and so, there is a surplus of bonds in the market. This will cause a downward pressure to apply on price, so that Qd = Qs eventually.
Hope this helps!
The correct answer on Gradpoint is a government employee
Answer:
It should be GNP because all others seem invalid
Thanks for the points also :-)
Answer:
The correct answer is durable; instability.
Explanation:
The stock of capital goods in hand affects investment spending. If there are sufficient capital goods in hand, the purchase of more goods will be uneconomical.
Capital goods are durable so their purchase can be postponed just like durable consumer goods. But this makes changes in investment spending unpredictable and unstable.
