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Everything Else Held Constant,when Bonds Become Less Widely Traded,and as a Consequence

Question 164

Multiple Choice

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 ________.


A) right;rises
B) right;falls
C) left;falls
D) left;rises

Correct Answer:

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