The Demand for Bonds Curve Slopes Downwards Because

question 174

Multiple Choice

The demand for bonds curve slopes downwards because

• A) at higher prices, bonds pay higher interest which makes them more attractive to buyers.
• B) lower prices reduce the cost of borrowing which makes them less attractive to buyers.
• C) at lower prices, bonds pay higher interest which makes them more attractive to buyers.
• D) higher prices raise the cost of borrowing which makes them less attractive to buyers.

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Definitions:

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