Asthepriceofabond_____andtheexpectedreturn_____,bondsbecomemoreattractivetoinvestorsandthequantitydemandedrises.
A. falls;rises
B. falls;falls
C. rises;rises
D. rises;falls
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Ifinterestratesareexpectedtoriseinthefuture,thedemandforlong-termbonds_____andthedemandcurveshiftstothe_____.
A. rises;right
B. rises;left
C. falls;right
D. falls;left
Deflationcausesthe_____bondstoincrease,the_____bondstodecrease,and_____toincrease.
A. supplyof;demandfor;bondprices
B. supplyof;demandfor;interestrates
C. demandfor;supplyof;bondprices
D. demandfor;supplyof;interestrates
Holdingeverythingelseequal,anincreaseinthemoneysupplycauses
A. interestratestodeclineinitially.
B. interestratestoincreaseinitially.
C. bondpricestodeclineinitially.
D. both(a)and(c)oftheabove.
Holdingeverythingelseequal,anincreaseinthemoneysupplycauses
A. interestratestodeclineinitially.
B. interestratestoincreaseinitially.
C. bondpricestoincreaseinitially.
D. both(a)and(c)oftheabove.
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