Exam 5: The Behavior of Interest Rates

When gold prices become more volatile,the ________ curve for gold shifts to the ________; ________ the price of gold.

Everything else held constant,when the government has higher budget deficits

Of the four effects on interest rates from an increase in the money supply,the one that works in the opposite direction of the other three is the

The opportunity cost of holding money is

In the bond market,the market equilibrium shows the market-clearing ________ and market-clearing ________.

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

Everything else held constant,when bonds become less widely traded,and as a consequence the market becomes less liquid,the demand curve for bonds shifts to the ________ and the interest rate ________.

Everything else held constant,if the expected return on U.S.Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent,then the expected return of corporate bonds ________ relative to U.S.Treasury bonds and the demand for corporate bonds ________.

A return to the gold standard,that is,using gold for money will ________ the ________ for gold,________ its price,everything else held constant.