The Demand Curve for Bonds Would Be Shifted to the Left

question 44

Multiple Choice

The demand curve for bonds would be shifted to the left by

• A)an increase in expected returns on other assets.
• B)a decrease in the information costs of bonds relative to other assets.
• C)a decrease in expected inflation.
• D)an increase in the liquidity of bonds relative to other assets.

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Definitions:

Correlations

A measure indicating the relationship between two variables, showing whether and how strongly they are related.

Causality

The principle or relationship between cause and effect where one event (the cause) leads to the outcome of another event (the effect).

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.