If brokerage commissions on bond sales decrease, then, other things equal, the demand for bonds will __________ and the demand for real estate will __________. A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase

The answer is B) increase; decrease. When brokerage commissions on bond sales decrease, it becomes cheaper for investors to purchase bonds. This will lead to an increase in demand for bonds, as investors will be attracted by the lower transaction costs and potential for higher returns. However, as demand for bonds increases, the demand for other investments, such as real estate, may decrease. This is because investors may shift their focus and funds towards purchasing bonds instead, as they now represent a more attractive investment option. Therefore, the demand for real estate may decrease as a result.