5. Which of the following is TRUE about the market for bonds?
a) When Bd < Bs , there is excess demand
b) When there is excess supply, the price will fall
c) When there is excess supply, the interest rate will rise
d) All of the above are true
e) only b. and c. are true
6. Which of the following is TRUE about the demand for bonds?
a) In an expansion with growing wealth, the demand curve for bonds shifts to the right
b) If today people expect higher interest rates in the future, then todayâs expected return for long-term bonds will fall, which will shift todayâs demand curve to the left
c) An increase in the expected rate of inflation lowers the expected return for bonds, causing the demand curve to shift to the left
d) All of the above are true
e) only a. and b. are true
7. Which of the following is TRUE about the demand for bonds?
a) An increase in the riskiness of bonds causes the demand curve to shift to the left
b) An increased liquidity of bonds results in the demand curve shifting right
c) An increased liquidity of bonds results in the demand curve shifting left
d) All of the above are true
e) only a. and b. are true
8. Which of the following is TRUE about the supply of bonds?
a) In an economic expansion, the supply curve shifts to the left
b) An increase in expected inflation shifts the supply curve for bonds to the right
c) An increase in the budget deficit shifts the supply curve to the right
d) All of the above are true
e) only b. and c. are true
5. Which of the following is TRUE about the market for bonds?
a) When Bd < Bs , there is excess demand
b) When there is excess supply, the price will fall
c) When there is excess supply, the interest rate will rise
d) All of the above are true
e) only b. and c. are true
6. Which of the following is TRUE about the demand for bonds?
a) In an expansion with growing wealth, the demand curve for bonds shifts to the right
b) If today people expect higher interest rates in the future, then todayâs expected return for long-term bonds will fall, which will shift todayâs demand curve to the left
c) An increase in the expected rate of inflation lowers the expected return for bonds, causing the demand curve to shift to the left
d) All of the above are true
e) only a. and b. are true
7. Which of the following is TRUE about the demand for bonds?
a) An increase in the riskiness of bonds causes the demand curve to shift to the left
b) An increased liquidity of bonds results in the demand curve shifting right
c) An increased liquidity of bonds results in the demand curve shifting left
d) All of the above are true
e) only a. and b. are true
8. Which of the following is TRUE about the supply of bonds?
a) In an economic expansion, the supply curve shifts to the left
b) An increase in expected inflation shifts the supply curve for bonds to the right
c) An increase in the budget deficit shifts the supply curve to the right
d) All of the above are true
e) only b. and c. are true
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Related questions
| 1. | In the money market, money supply is determined by the central bank, such as the Fed in the U.S. Because of this, money supply curve is usually vertical in the short run, while the money demand curve is downward sloping. The quantity demanded of money has an inverse relationship with the interest rate, but a direct relationship with both the price level and real GDP. Therefore, when the general price level increases, what will most likely happen? | ||||||||||||||||
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| 3. | Suppose workers become pessimistic about their future employment, which causes them to save more and spend less. If the economy is in the Keynesian range of the aggregate supply curve, then | ||||||||||||||||
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| 5. | Which of the following will shift the aggregate demand curve to the left? | ||||||||||||||||
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| 6. | Which of the following will shift the aggregate supply curve to the left? | ||||||||||||||||
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| 8. | There are also two kinds of deflation, the demand-pull deflation and cost-push deflation. Then which of the following is most likely to be true? | ||||||||||||||||
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| 9. | The short-run aggregate supply curve (SRAS) can be written as follows: Y = Yf + b (p - pe), where Y = real GDP, Yf = full-employment real GDP, p = price level, pe = expected price level, and b is a positive coefficient. The SRAS can be re-written as p = pe - (1/b)(Yf) + (1/b)(Y). Then which of the following is true? | ||||||||||||||||
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