A Leftward Shift of the Supply Curve Will Lead to an

question 33

Multiple Choice

A leftward shift of the supply curve will lead to an

• A) increase in equilibrium price.
• B) excess supply at the old equilibrium price.
• C) increase in quantity supplied.
• D) All of the above.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Credit Default Swap

A financial derivative allowing an investor to "swap" or offset the risk of credit loss from the default of a borrower.

Default Risk

The risk that a borrower will not make the contractual interest or principal payments on their debt obligations.

Corporate Bond

A debt security issued by a corporation to raise funding, promising to repay the principal along with interest at specified dates.