Exam 5: The Behavior of Interest Rates

If the price of gold becomes less volatile,then,other things equal,the demand for stocks will ________ and the demand for antiques will ________.

An increase in the expected inflation rate will ________ the ________ for gold,________ its price,everything else held constant.

If brokerage commissions on bond sales decrease,then,other things equal,the demand for bonds will ________ and the demand for real estate will ________.

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

If brokerage commissions on stocks fall,everything else held constant,the demand for bonds ________,the price of bonds ________,and the interest rate ________.

If there is an excess supply of money

Use the following figure to answer the question : -In the figure above,one factor NOT responsible for the decline in the demand for money is

Holding everything else constant,if the price of a Bitcoin becomes less volatile,the demand for bonds ________,the price of bonds ________,and the interest rate ________.

Pieces of property that serve as a store of value are called

Holding many risky assets and thus reducing the overall risk an investor faces is called

If prices in the diamond market become less volatile,all else equal,then the demand for diamonds ________ and the demand for gold ________.

You would be less willing to purchase U.S. Treasury bonds,other things equal,if

In a business cycle expansion,the ________ of bonds increases and the ________ curve shifts to the ________ as business investments are expected to be more profitable,everything else held constant.

-In the figure above,the price of bonds would fall from P2 to P1 if

Use the following figure to nswer the question : -In the figure above, illustrates the effect of an increased rate of money supply growth at time period 0. From the figure, one can conclude that the

Everything else held constant,during a business cycle expansion,the supply of bonds shifts to the ________ as businesses perceive more profitable investment opportunities,while the demand for bonds shifts to the ________ as a result of the increase in wealth generated by the economic expansion.

________ in the money supply in the market for money creates excess demand for ________,causing interest rates to ________,everything else held constant.

Holding everything else constant,if interest rates are expected to increase,the demand for bonds ________ and the demand curve shifts ________.

In the market for money,a decline in the expected inflation rate causes the demand for money to ________ and the demand curve to shift to the ________,everything else held constant.

- In the figure above,a factor that could cause the supply of bonds to shift to the right is