Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / In a business cycle expansion the of bonds increases and the curve shifts to the as busi...

In a business cycle expansion the of bonds increases and the curve shifts to the as business investments are expected to be more profitable

1) In a business cycle expansion, the ________ of bonds increases and the ________ curve shifts to the ________ as business investments are expected to be more profitable.

A) supply; supply; right

B) supply; supply; left

C) demand; demand; right

D) demand; demand; left

2) When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held constant.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

3) An increase in the expected inflation rate causes the supply of bonds to ________ and the supply curve to shift to the ________, everything else held constant.

A) increase; left

B) increase; right

C) decrease; left

D) decrease; right

Jun 18 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions