The Demand Curve for Bonds Would Be Reduced by

question 82

Multiple Choice

The demand curve for bonds would be reduced by

• A)a decrease in expected returns on other assets.
• B)an increase in the information costs of bonds relative to other assets.
• C)an increase in wealth.
• D)an increase in the liquidity of bonds relative to other assets.

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Definitions:

Currency

The system of money in general use in a particular country or economic system for buying and selling goods and services.

Current Account

A component of a country's balance of payments that measures the trade balance plus net income and direct payments between countries.

Flows of Funds

The movements of money between sectors of an economy, showing how funds are used and where they come from.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.