All Else Constant, an Increase in the Demand for Bonds

question 127

Multiple Choice

All else constant, an increase in the demand for bonds

• A) increases the equilibrium quantity and the equilibrium price of bonds.
• B) increases the equilibrium quantity and decreases the equilibrium price of bonds.
• C) decreases the equilibrium quantity and increases the equilibrium price of bonds.
• D) decreases the equilibrium quantity and the equilibrium price of bonds.

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Definitions:

Reduction In Risk

A decrease in the uncertainty associated with the return on an investment or the outcome of an action, often pursued through diversification or insurance.

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A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

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An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

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Shares issued directly by a company to investors as a means of raising capital, often through an initial public offering (IPO).