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:

Compulsions

Actions or thoughts that an individual is compelled to perform repeatedly, in response to overwhelming obsessions or based on strict rules that must be adhered to.

Delusions

False beliefs held with strong conviction despite superior evidence to the contrary, often occurring in psychiatric conditions.

Hallucinations

Perception of something not present, such as hearing or seeing something that isn't there, often associated with psychiatric conditions or neurological disorders.

Obsessions

Persistent, unwanted thoughts, images, or urges that cause distress or anxiety.