49) 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 OC) fall; right OD) fall; left

49) 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 OC) fall; right OD) fall; left

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter9: The Financial Markets And The Economy: The Tail That Wags The Dog

Section: Chapter Questions

Problem 5TY

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Question

Answer question 49

10:20
452
docs.google.com/forms
6
C) rises; right
D) rises; left
49) 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
50) Everything else held constant,
when bonds become less widely
traded, and as a consequence the
market becomes less liquid, the
demand curve for bonds shifts to the
and the interact rato
O

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