Other things being equal, an exogenous increase in the price level causes the aggregate wealth of holders and issuers of private- sector bonds to
A)rise in nominal terms, but fall in real terms.
B)not change since the changes in the wealth of bondholders and bond issuers offset each other.
C)decrease.
D)either increase or decrease depending on other factors.
E)increase.

Question

Quizplus · Accepted Answer

The Answer of Other things being equal, an exogenous increase in the price level causes the aggregate wealth of holders and issuers of private- sector bonds to
A)rise in nominal terms, but fall in real terms.
B)not change since the changes in the wealth of bondholders and bond issuers offset each other.
C)decrease.
D)either increase or decrease depending on other factors.
E)increase.

Other Things Being Equal, an Exogenous Increase in the Price