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

question 5

Multiple Choice

Everything else held constant,an increase in the liquidity of bonds results in a ________ in demand for bonds and the demand curve shifts to the ________.

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

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Definitions:

Randomly Occurring Patterns

Sequences or arrangements that appear without a specific order or plan, often perceived mistakenly as meaningful.

Significant

Sufficiently great or important to be worthy of attention; noteworthy.

Self-Serving Bias

A common cognitive bias that causes individuals to see things in a way that favors themselves, often by attributing successes to personal skill and failures to external factors.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.