During a period of economic expansion, when expected profitability is high,
A) the demand curve for bonds shifts to the left.
B) the supply curve of bonds shifts to the right.
C) the equilibrium interest rate falls.
D) the equilibrium price of bonds rises.
B
Economics
You might also like to view...
All of the following can be used to compute average profit except
A) marginal profit minus marginal cost. B) average revenue minus average total cost C) total profit divided by quantity. D) price minus average total cost.
Economics
Risk sharing is profitable for financial institutions due to
A) low transactions costs. B) asymmetric information. C) adverse selection. D) moral hazard.
Economics