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 _________.

2021-04-14

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 _.

答案：

right; falls

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

内容

0
When bond interest rates become less volatile, the demand for bonds _________ and the interest rate _________. A: increases; rises B: increases; falls C: decreases; falls D: decreases; rises
1
The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that A: the money market is in equilibrium. B: people buy bonds and the interest rate falls. C: people sell bonds and the interest rate falls. D: bond prices fall and so the interest rate falls.
2
According to the market segmentation theory of the term structure,________ A: the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturity. B: bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time. C: investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope upward. D: all of the above. E: none of the above.
3
When the interest rate on a bond is below the equilibrium interest rate, there is excess _________ in the bond market and the interest rate will _________ A: demand; rise B: demand; fall C: supply; fall D: supply; rise
4
When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________. A: demand; rise B: demand; fall C: supply; fall D: supply; rise