Everything Else Held Constant,an Increase in the Riskiness of Bonds

question 88

Multiple Choice

Everything else held constant,an increase in the riskiness of bonds relative to alternative assets causes the demand for bonds to ________ and the demand curve to shift to the ________.

• A)rise;right
• B)rise;left
• C)fall;right
• D)fall;left

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Definitions:

Exports

Goods or services sold by one country to another, contributing to the selling country's gross domestic product.

Imports

Products or services imported into a country from abroad for the purpose of selling.

Trade Deficit

An economic condition that occurs when a country imports more goods and services than it exports.

Exports

Goods or services produced in one country and sold to buyers in another country, contributing to the selling country's economy.