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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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- Spring '08