If the quantity of bonds demanded exceeds the quantity of bonds supplied, bond prices: a. Will rise and yields would increase b. Would fall and yields would increase c. Would rise and yields would fall d. Will rise and yields will remain constant
If the quantity of bonds demanded exceeds the quantity of bonds supplied, bond prices: a. Will rise and yields would increase b. Would fall and yields would increase c. Would rise and yields would fall d. Will rise and yields will remain constant
Chapter15: Monetary Policy
Section: Chapter Questions
Problem 1WNG
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If the quantity of bonds demanded exceeds the quantity of bonds supplied,
a. Will rise and yields would increase
b. Would fall and yields would increase
c. Would rise and yields would fall
d. Will rise and yields will remain constant
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