Suppose That Savers Become Much More Willing to Purchase a Certain

question 39

Multiple Choice

Suppose that savers become much more willing to purchase a certain type of municipal bond. The result will be that the bond's price will

• A)fall relative to the price of U.S. Treasury securities but rise relative to the price of corporate bonds.
• B)rise relative to the price of U.S. Treasury securities but fall relative to the price of corporate bonds.
• C)rise relative to the prices of U.S. Treasury securities and corporate bonds.
• D)fall relative to the prices of U.S. Treasury securities and corporate bonds.

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Definitions:

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