Multiple Choice
If the expected gains on stocks rise, while the expected returns on bonds do not change, then
A) the demand curve for bonds will shift to the right.
B) the supply curve for loanable funds will shift to the right.
C) the equilibrium interest rate will fall.
D) the equilibrium interest rate will rise.
Correct Answer:

Verified
Correct Answer:
Verified
Q46: How is the interest rate that prevails
Q47: In a large open economy,<br>A)domestic lending and
Q48: The life-cycle model of consumption and saving
Q49: In the bond market, the buyer is
Q50: During the last several decades, the government
Q52: Suppose that Congress passes an investment tax
Q53: If households increase their saving at the
Q54: A one-year discount bond with a face
Q55: If the equilibrium price in the bond
Q56: During a period of economic expansion, when