Exam 5: The Behavior of Interest Rates

________ in the money supply creates excess ________ money,causing interest rates to ________,everything else held constant.

Everything else held constant,an increase in the liquidity of bonds results in a ________ in demand for bonds and the demand curve shifts to the ________.

Everything else held constant,when prices in the art market become more uncertain,

If the price of gold becomes less volatile,then,other things equal,the demand for stocks will ________ and the demand for antiques will ________.

The bond supply and demand framework is easier to use when analyzing the effects of changes in ________,while the liquidity preference framework provides a simpler analysis of the effects from changes in income,the price level,and the supply of ________.

If brokerage commissions on stocks fall,everything else held constant,the demand for bonds ________,the price of bonds ________,and the interest rate ________.

Everything else held constant,if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent,then the expected return of holding RST stock ________ relative to XYZ stock and demand for XYZ stock ________.

It is possible that when the money supply rises,interest rates may ________ if the ________ effect is more than offset by changes in income,the price level,and expected inflation.

When the price level ________,the demand curve for money shifts to the ________ and the interest rate ________,everything else held constant.

When the inflation rate is expected to increase,the ________ for bonds falls,while the ________ curve shifts to the right,everything else held constant.

If the Fed wants to permanently lower interest rates,then it should raise the rate of money growth if

If the interest rate on a bond is above the equilibrium interest rate,there is an excess ________ for bonds and the bond price will ________.

When an economy grows out of a recession,normally the demand for bonds ________ and the supply of bonds ________,everything else held constant.

In the 1990s Japan had the lowest interest rates in the world due to a combination of

If fluctuations in interest rates become smaller,then,other things equal,the demand for stocks ________ and the demand for long-term bonds ________.

The bond demand curve is ________ sloping,indicating a(n)________ relationship between the price and quantity demanded of bonds.

An increase in the expected inflation rate causes the supply of bonds to ________ and the supply curve to shift to the ________,everything else held constant.

When real income ________,the demand curve for money shifts to the ________ and the interest rate ________,everything else held constant.

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

If the interest rate on a bond is below the equilibrium interest rate,there is an excess ________ of bonds and the bond price will ________.