HW_3_Questions_Chapters_4[1]

HW_3_Questions_Chapters_4[1] - raise; financial raise; real...

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HW 3 Chapter 4 Chapter 4 End-of-Chapter Questions 1-2,4,7,9,11-14 Multiple Choice 1. Which of the following will not increase the demand for an asset? The asset's expected return rises relative to other assets. The asset's liquidity rises relative to other assets. Wealth increases. The asset's risk increases relative to other assets. 2. When people expect interest rates to rise in the future, the _____ curve for bonds shifts to the _____. supply; right demand; left supply; left demand; right 3. An increase in the expected rate of inflation will _____ the expected return on bonds relative to that on _____ assets. reduce; real reduce; financial
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Unformatted text preview: raise; financial raise; real 4. An increase in the expected rate of inflation causes the demand for bonds to _____ and the supply of bonds to _____. fall; fall fall; rise rise; fall rise; rise 5. During a business cycle expansion, the supply of bonds shifts to the _____ as businesses perceive more profitable investment opportunities, while the demand for bonds shifts to the _____ as a result of the increase in wealth generated by the economic expansion. left; left right; left left; right right; right 6. Government budget surpluses shift the bond ______ curve to the ______. supply; left demand; left supply; right demand; right...
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This note was uploaded on 09/07/2011 for the course FIN 353 taught by Professor Cobus during the Spring '08 term at S.F. State.

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HW_3_Questions_Chapters_4[1] - raise; financial raise; real...

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