Suppose that the return on assets other than bonds falls. In the bond market this will result in a(n):
A. increase in the price of bonds.
B. movement down the bond demand curve.
C. shift to the left of the bond demand curve.
D. shift to the left of the bond supply curve.
Answer: A
You might also like to view...
Financial markets serve as the
A) primary source of funds for financial intermediaries. B) means of converting cash into tangible assets. C) transmission mechanism between savers and borrowers. D) economic system's ultimate source of funds.
In the early 1980s, the disinflation in the United States
a. was accompanied by rapidly growing deficits. b. was costless in terms of output and employment effects. c. was the result of a well-publicized expansionary monetary policy. d. did not result in a severe recession.
Sophia sits behind Gabriel on an airplane. Gabriel owns the right to recline his seat and values this right at $10 . Sophia values a non-reclined seat in front of her at $20 . Assuming no transaction costs, an efficient solution would be for Sophia to pay Gabriel $15 to not recline his seat
a. True b. False Indicate whether the statement is true or false
Explain the main arguments in favor of economic stabilization