Exam 5: The Behavior of Interest Rates

Deflation causes the demand for bonds to ________,the supply of bonds to ________,and bond prices to ________,everything else held constant.

When the prices of rare coins become volatile,the ________ curve for bonds shifts to the ________,everything else held constant.

Everything else held constant,when real estate prices are expected to decrease

Use the following figure to answer the question : -In the figure above,the decrease in the interest rate from i1 to i2 can be explained by

When the expected inflation rate increases,the real cost of borrowing ________ and bond supply ________,everything else held constant.

Use the following figure to answer the question : -In the figure above,the decrease in the interest rate from i1 to i2 can be explained by

It is possible that when the money supply rises,interest rates may ________ if the ________ effect is more than offset by changes in income,the price level,and expected inflation.

The bond supply curve is ________ sloping,indicating a(n)________ relationship between the price and quantity supplied of bonds,everything else equal.

When the price of a bond is ________ the equilibrium price,there is an excess demand for bonds and price will ________.

In the bond market,the bond demanders are the ________ and the bond suppliers are the ________.

In the market for money,when the price level falls,the ________ curve for nominal money ________,and interest rates ________,everything else held constant.

During a recession,the supply of bonds ________ and the supply curve shifts to the ________,everything else held constant.

When the price of a bond decreases,all else equal,the bond demand curve

When the interest rate on a bond is ________ the equilibrium interest rate,in the bond market there is excess ________ and the interest rate will ________.

When the interest rate changes,

Factors that decrease the demand for bonds include

In the market for money,when the price level ________,the demand curve for money shifts to the ________ and the interest rate ________,everything else held constant.

Use the following figure to nswer the question : -The figure above illustrates the effect of an increased rate of money supply growth at time period T0. From the figure,one can conclude that the

In the bond market,the market equilibrium shows the market-clearing ________ and market-clearing ________.

If prices in the bond market become more volatile,everything else held constant,the demand curve for bonds shifts ________ and interest rates ________.