Suppose That Savers Become Less Willing to Purchase Medium-Quality Corporate

Multiple Choice

Suppose that savers become less willing to purchase medium-quality corporate bonds. The result will be that the prices of medium-quality corporate bonds will

A) fall relative to the price of U.S. Treasury securities, but rise relative to the price of high-quality corporate bonds.
B) rise relative to the price of U.S. Treasury securities, but fall relative to the price of high-quality corporate bonds.
C) rise relative to the prices of U.S. Treasury securities and high-quality corporate bonds.
D) fall relative to the prices of U.S. Treasury securities and high-quality corporate bonds.