In the figure above, the price of bonds would fall from P1 to P2 when A) interest rates are expected to fall in the future. B) inflation is expected to increase in the future. C) the expected return on bonds relative to other assets is expected to increase in the future. D) the riskiness of bonds falls relative to other assets.
Homework Answers
Price of bonds is a rate at which people are ready to buy these. Bonds have inverse relation with interest rates. When interest rates rise, bond price falls. In this case, bond prices have fallen from p1 to p2. Demand has shifted left. Reason is option B. inflation is expected to rise in future. Inflation decreases value of money and hence offers less purchasing power to bonds in future.
Add Answer to:
In the figure above, the price of bonds would fall from P1 to P2
when A)...
---- ---- ------ Quantity of Bonds, B In the figure above, a factor that could cause...
---- ---- ------ Quantity of Bonds, B In the figure above, a factor that could cause the demand for bonds to decrease (shift to the left) is: O A. an increase in the expected return on bonds relative to other assets. OB. an increase in wealth. O c. a decrease in the expected return on bonds relative to other assets. OD. a reduction in the riskiness of bonds relative to other assets.
Figure 7-4 Refer to Figure 7-4. When the price falls from P1 to P2, which...
Figure 7-4
Refer to Figure 7-4. When the price falls from P1
to P2, which area represents the increase in consumer surplus to
new buyers entering the market?
Group of answer choices
AFG
ABC
BDF
BCGD
We were unable to transcribe this imageQuestion: Figure 7-4 Refer to Figure 7-4. When the Figure 7-4 Price 02 Demand Quaranty Refer to Figure 7-4. When the price falls from Pi to P2, which area represents the increase in consu surplus to new...
Figure 9 Price F D B PI G c - P2 Demand Quantity Q1 02 Refer...
Figure 9 Price F D B PI G c - P2 Demand Quantity Q1 02 Refer to Figure 9. Which area represents consumer surplus at a price of P1? a. BDF b. AFG C. ABDG d. ABC Refer to Figure 9. Which area represents consumer surplus at a price of P2? a. BDF b. AFG C. ABDG d. ABC Refer to Figure 9. Which area represents the increase in consumer surplus when the price falls from P1 to P2? a....
Supply 17.) Refer to the graph shown. When the price falls from PI to P2, the...
Supply 17.) Refer to the graph shown. When the price falls from PI to P2, the producer surplus a. decreases by A. b. increases by B. c. is A+B. d.is A+B+C+D. e, both a and care correct. 18.) Refer to the graph above. When the market price of the good that you sell goes from P2 to P1, then: you increase production by (Q1-Q2) and the additional cost of producing the extra quantity is D. b. you increase production by...
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held...
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases, increases B) increases, decreases C) decreases; decreases D) decreases, increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand for GE stock...
Price Supply Q1 Q2 Quantity Refer to Figure 7-15. When the price rises from P1 to...
Price Supply Q1 Q2 Quantity Refer to Figure 7-15. When the price rises from P1 to P2, what area represents the increase in producer surplus? OA. OA+B+C. ОА+В. OG.
PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. Total revenue when the price is P...
PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. Total revenue when the price is P 1 is represented by a. areas A+B. b. areas C+D. C. area D. d. areas B+D. ESTION 11 Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase total revenue? a. 2.8 o 6.0.3 C. 3.6 d. 1 PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. If rectangle D is larger...
2. The demand curve for bonds would be shifted to the left by A) an increase...
2. The demand curve for bonds would be shifted to the left by A) an increase in expected returns on other assets. B)a decrease in the information costs of bonds relative to other assets. a decrease in expected inflation. D) an increase in the liquidity of bonds relative to other assets.
14-19 just answers 14. If wealth increases, the demand for stocks and that of long-term bonds...
14-19 just answers
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases; increases B) increases; decreases C) decreases, decreases D) decreases; increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand...
1.) Using the above figure, if the price level increases the equilibrum interest rate rises and...
1.)
Using the above figure, if the price level increases
the equilibrum interest rate rises and the equilibrium quantity
of money rises
the equilibrium interest rate rises and the equilibrium quantity
of money falls
the equilibrium interest rate rises and the equilibrium quantity
of money stays the same
the equilibrium interest rate falls and the equilibrium quantity
of money falls
the equilibrium interest rate falls and the equilibrium quantity
of money stays the same
2.)
The demand for money is...
---- ---- ------ Quantity of Bonds, B In the figure above, a factor that could cause the demand for bonds to decrease (shift to the left) is: O A. an increase in the expected return on bonds relative to other assets. OB. an increase in wealth. O c. a decrease in the expected return on bonds relative to other assets. OD. a reduction in the riskiness of bonds relative to other assets.
Figure 7-4
Refer to Figure 7-4. When the price falls from P1
to P2, which area represents the increase in consumer surplus to
new buyers entering the market?
Group of answer choices
AFG
ABC
BDF
BCGD
We were unable to transcribe this imageQuestion: Figure 7-4 Refer to Figure 7-4. When the Figure 7-4 Price 02 Demand Quaranty Refer to Figure 7-4. When the price falls from Pi to P2, which area represents the increase in consu surplus to new...
Figure 9 Price F D B PI G c - P2 Demand Quantity Q1 02 Refer to Figure 9. Which area represents consumer surplus at a price of P1? a. BDF b. AFG C. ABDG d. ABC Refer to Figure 9. Which area represents consumer surplus at a price of P2? a. BDF b. AFG C. ABDG d. ABC Refer to Figure 9. Which area represents the increase in consumer surplus when the price falls from P1 to P2? a....
Supply 17.) Refer to the graph shown. When the price falls from PI to P2, the producer surplus a. decreases by A. b. increases by B. c. is A+B. d.is A+B+C+D. e, both a and care correct. 18.) Refer to the graph above. When the market price of the good that you sell goes from P2 to P1, then: you increase production by (Q1-Q2) and the additional cost of producing the extra quantity is D. b. you increase production by...
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases, increases B) increases, decreases C) decreases; decreases D) decreases, increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand for GE stock...
Price Supply Q1 Q2 Quantity Refer to Figure 7-15. When the price rises from P1 to P2, what area represents the increase in producer surplus? OA. OA+B+C. ОА+В. OG.
PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. Total revenue when the price is P 1 is represented by a. areas A+B. b. areas C+D. C. area D. d. areas B+D. ESTION 11 Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase total revenue? a. 2.8 o 6.0.3 C. 3.6 d. 1 PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. If rectangle D is larger...
2. The demand curve for bonds would be shifted to the left by A) an increase in expected returns on other assets. B)a decrease in the information costs of bonds relative to other assets. a decrease in expected inflation. D) an increase in the liquidity of bonds relative to other assets.
14-19 just answers
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases; increases B) increases; decreases C) decreases, decreases D) decreases; increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand...
1.)
Using the above figure, if the price level increases
the equilibrum interest rate rises and the equilibrium quantity
of money rises
the equilibrium interest rate rises and the equilibrium quantity
of money falls
the equilibrium interest rate rises and the equilibrium quantity
of money stays the same
the equilibrium interest rate falls and the equilibrium quantity
of money falls
the equilibrium interest rate falls and the equilibrium quantity
of money stays the same
2.)
The demand for money is...
Most questions answered within 3 hours.
-
You measure 22 dogs' weights, and find they have a mean weight
of 64 ounces. Assume...
asked 58 seconds ago -
Complete and balance the following methesis reaction in aqueous
solution.
Instructions
• Use proper element capitalization....
asked 12 minutes ago -
Green Tree Corporation is expecting to receive $0.5 million at
the end of Year 1, $0.25...
asked 21 minutes ago -
A face value of $10,000 is assumed for these Treasury bills.
Maturity Days to Maturity Bank...
asked 17 minutes ago -
Please read the article attached.Under Armour Is Subject of
Federal Accounting Probes - WSJ.pdf Under Armour,...
asked 14 minutes ago -
An increase in income will usually shift out the demand for a
product.
Group of answer...
asked 19 minutes ago -
What is the correct unit of the spring constant k?
A- N m
B- J/m
C-...
asked 30 minutes ago -
A manufacturing company prepays its insurance coverage for a
three-year period. The premium for the three...
asked 33 minutes ago -
What is the other name for Shortest Job First Preemptive
Algorithm?
What are the 5 different...
asked 46 minutes ago -
24) An outbreak due to exposure of a group of persons to the
same harmful influence...
asked 56 minutes ago -
Show the calculation of (1) the expected grams of alum
(KAl(SO4)2 •12 H2O) formed from the...
asked 58 minutes ago -
*There are two different answers posted. Other students
were asked the same question. Which response is...
asked 1 hour ago