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The reduction of brokerage commissions for trading common stocks that occurred in 1975 caused the demand for bonds to and the demand curve to shift to the

1) The reduction of brokerage commissions for trading common stocks that occurred in 1975 caused the demand for bonds to ________ and the demand curve to shift to the ________.

A) fall; right

B) fall, left

C) rise; right

D) rise; left

2) Factors that decrease the demand for bonds include

A) an increase in the volatility of stock prices.

B) a decrease in the expected returns on stocks.

C) a decrease in the inflation rate.

D) a decrease in the riskiness of stocks.

3) During a recession, the supply of bonds ________ and the supply curve shifts to the  _______everything else held constant.

A) increases; left

B) increases; right

C) decreases; left

D) decreases; right

Jun 18 2020 View more View Less

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