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d.  all of the above.

e.  only (a) and (b) of the above.

23. When the price of a bond is above the equilibrium price, there is an excess _____ for (of) bonds and price will _____.

a.  demand; rise

b.  demand; fall

c.  supply; fall

d.  supply; rise

24. When the price of a bond is _____ the equilibrium price, there is an excess _____ for (of) bonds and price will _____.

a.  below; demand; rise

b.  below; demand; fall

c.  below; supply; fall

d.  above; supply; rise

25. When the interest rate changes,

a.  the demand curve for bonds shifts to the right.

b.  the demand curve for bonds shifts to the left.

c.  the supply curve for bonds shifts to the right.

d.  the supply curve for bonds shifts to the left.

e.  none of the above occurs.

26. When a recession occurs, normally the demand for bonds _____ and the supply of bonds _____.

a.  increases; increases

b.  increases; decreases

c.  decreases; decreases

d.  decreases; increases

27. When an economy grows out of a recession, normally the demand for bonds _____ and the supply of bonds _____.

a.  increases; increases

b. increases; decreases

c.  decreases; decreases

d.  decreases; increases

28. When people revise upward their expectations of future interest rates, the _____ curve for bonds shifts to the _____.

a.  demand; right

b.  demand; left

c.  supply; left

d.  supply; right

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