Which COMBINATION of statements given below is right? Consider the following lis

ID: 2633264 • Letter: W

Question

Which COMBINATION of statements given below is right?

Consider the following list of 4 statements:

1) When the Demand Schedule for bonds shifts to the Left, interest rate goes Down.

2) When the Demand Schedule for bonds shifts to the Left, interest rate goes Up.

3) When the Demand Schedule for bonds shifts to the Right, interest rate goes Down.

4) When the Demand Schedule for bonds shifts to the Right, interest rate goes Up.

Now, decide, which COMBINATION of statements given below is correct?

Select one:

a. Statements (3) and (4) are BOTH correct

b. Statements (1) and (4) are BOTH correct

c. Statements (1) and (3) are BOTH correct

d. Statements (2) and (3) are BOTH correct

ANSWER:

c. Statements (1) and (3) are BOTH correct