The Demand for Bonds Is

question 1

Multiple Choice

The demand for bonds is

• A)equivalent to the demand for loanable funds.
• B)equivalent to the supply of loanable funds.
• C)represented by an upward-sloping line when the price of bonds is on the vertical axis and the quantity of bonds demanded is on the horizontal axis.
• D)represented by a downward-sloping line when the interest rate is on the vertical axis and the quantity of bonds demanded is on the horizontal axis.

---

Definitions:

Demand Curve

The Demand Curve is a graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Quantity Demanded

The level of product or service that buyers intend to purchase at various prices.

Increase

A situation where there is a rise in quantity, size, number, value, or intensity of a particular variable or condition.

Complementary Goods

Products or services that are used together, where the demand for one is increased when the price of the other decreases.