AuthorTopic: Another Econ Q
Shaan23
@2014-10-30 11:41:52
An increase in real output will cause:
Answer:
an INCREASE in interest rates and fall in bond prices
Solution:
An increase in real output causes an increase in money demand, which causes a rise in interest rates.

But From the NOTES and how I've been reading it:
A rise in the interest rate brings a decrease in the quantity of money demanded. demanded.

Whats the source of confusion here?

CFA Discussion Topic: Another Econ Q

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz