When bonds become more widely traded, and as a consequence the market becomes more liquid, the demand curve for bonds shifts to the _________ and the interest rate _________.
举一反三
- When a municipal bond is given tax-free status, the demand for Treasury bonds shifts _________, and the interest rate on Treasury bonds _________
- If interest rates are expected to rise in the future, the demand for long-term bonds _____ and the demand curve shifts to the _____.
- When the expected inflation rate decreases, the demand for bonds _________, the supply of bonds _________, and the interest rate _________.
- Investors will be willing to pay more than the par value for bonds when the market rate of interest is higher than the contract rate of interest. ( )
- The slope of the AD-curve will become steeper if A: money demand becomes more income inelastic B: money demand becomes more interest elastic C: investment becomes more interest elastic D: the income tax rate is decreased E: none of the above