Multiple Choice
During an economic recession,
A) the bond demand and supply curves both shift to the left and the equilibrium interest rate usually falls.
B) the bond demand and supply curves both shift to the right and the equilibrium interest rate usually rises.
C) the bond demand curve shifts to the right, the bond supply curve shifts to the left, and the equilibrium interest rate usually falls.
D) the bond demand curve shifts to the left, the bond supply curve shifts to the right, and the equilibrium interest rate usually rises.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Suppose that Congress passes a law that
Q13: The supply curve for bonds would be
Q14: A decrease in expected inflation<br>A)usually leads to
Q15: In the bond market, the seller is
Q16: A one-year discount bond with a face
Q18: As wealth increases in the economy, we
Q19: In an effort to increase government revenue,
Q20: If there is an excess supply of
Q21: In an open economy, desired domestic lending<br>A)must
Q22: The bond supply curve slopes up because<br>A)interest