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If wealth increases, the demand for stocks ________ and that of long-term bonds ________, everything else held constant.

User Leony
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1 Answer

6 votes

Answer:

Increase

Increase

Step-by-step explanation:

When wealth increases, the disposable income of individuals increases and individuals are more willing and able to invest in stocks and long term bonds.

I hope my answer helps you.

User DasBeasto
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