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Unformatted text preview: Question 1 10 / 10 points As the price of a bond _________ and the expected return _________, bonds become more attractive to investors and the quantity demanded rises. a) rises; rises b) rises; falls c) falls; falls d) falls; rises Question 2 10 / 10 points The supply curve for bonds has the usual upward slope, indicating that as the price _________, ceteris paribus, the _________ increases. a) rises; supply b) falls; quantity supplied c) falls; supply d) rises; quantity supplied Question 3 0 / 10 points When the price of a bond is above the equilibrium price, there is excess _________ in the bond market and the price will _________. a) demand; fall b) demand; rise c) supply; fall d) supply; rise Question 4 0 / 10 points When the interest rate on a bond is _________ the equilibrium interest rate, there is excess _________ in the bond market...
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- Spring '08
- Interest Rates, budget deficit, Left-wing politics, Political spectrum, 80.00 100 %