If the Expected Gains on Stocks Rise,while the Expected Returns

question 25

Multiple Choice

If the expected gains on stocks rise,while the expected returns on bonds do NOT change,then

• A) the demand curve for bonds will shift to the left.
• B) the supply curve for loanable funds will shift to the right.
• C) the demand curve for loanable funds will shift to the left.
• D) the equilibrium interest rate will fall.