Exam 5: The Behavior of Interest Rates

Use the following figure to answer the questions : -The figure above illustrates the effect of an increased rate of money supply growth at time period T₀.From the figure,one can conclude that the

Use the following figure to answer the questions : -In the figure above,one factor not responsible for the decline in the demand for money is

In Keynes's liquidity preference framework,if there is excess demand for money,there is

In contrast to the CAPM ,the APT assumes that there can be several sources of ________ that cannot be eliminated through diversification.

Everything else held constant,when households save less,wealth and the demand for bonds ________ and the bond demand curve shifts ________.

Discovery of new gold in Alaska will ________ the ________ of gold,________ its price,everything else held constant.

Factors that can cause the supply curve for bonds to shift to the right include

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

When rare coin prices become volatile,the ________ curve for bonds shifts to the ________,everything else held constant.

Use the following figure to answer the questions : -In the figure above,the price of bonds would fall from P₁ to P₂

In Keynes's liquidity preference framework,individuals are assumed to hold their wealth in two forms:

You would be more willing to buy AT&T bonds (holding everything else constant)if

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

Holding many risky assets and thus reducing the overall risk an investor faces is called

Use the following figure to answer the questions : -In the figure above,the decrease in the interest rate from i₁ to i₂ can be explained by

Holding all other factors constant,the quantity demanded of an asset is

An increase in the interest rate

Holding everything else constant,

Everything else held constant,a decrease in wealth

When the Fed ________ the money stock,the money supply curve shifts to the ________ and the interest rate ________,everything else held constant.