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:

$157 Billion

A monetary figure representing a vast sum, often used in contexts of national budgets, total wealth of extremely wealthy individuals, or major corporate valuations.

$304 Billion

Represents a numerical value or amount, potentially referencing a budget, economic valuation, or other financial figure, without specific context provided here.

Mikhail Gorbachev

The last leader of the Soviet Union, known for his policies of glasnost (openness) and perestroika (restructuring), which contributed to the end of the Cold War and the dissolution of the Soviet Union.

Market Mechanisms

Processes through which the prices of goods and services are established in a free market economy, based largely on supply and demand.