When the price of a bond is ________ the equilibrium price, there is an excess demand for bonds and the price will ________.
A. above; rise
B. above; fall
C. below; fall
D. below; rise
Factors that determine the demand for an asset include changes in the ().
A. wealth of investors
B. liquidity of bonds relative to alternative assets
C. expected returns on bonds relative to alternative assets
D. risk of bonds relative to alternative assets
E. all of the above
Lower expected interest rates in the future ________ the demand for long-term bonds and shift the demand curve to the ________.
A. increase; left
B. increase; right
C. decrease; left
D. decrease; right
Factors that cause the demand curve for bonds to shift to the left include ().
A. an increase in the inflation rate
B. an increase in the liquidity of stocks
C. a decrease in the volatility of stock prices
D. all of the above