With the depressed current economic environment, it is likely to result a decrease in the demand...
With the depressed current economic environment, it is likely to result a decrease in the demand for bonds. Thus, we should expect that this market action will likely result in an:
Group of answer choices
increase bond prices and increase their yields.
decrease bond prices and increase their yields.
increase bond prices and decrease their yields.
decrease bond prices and decrease their yields.
Homework Answers
Answer
decrease bond prices and decrease their yields.
The bond prices will decrease as the disposable income of households are decreasing and the demand is also falling. A decrease will keep the quantity demanded incheck, but neither can companies or gavernment pay higher yeilds as the economy is in a recession.
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With the depressed current economic environment, it is likely to
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a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption...
a. Which of the following events would likely cause the decrease
in aggregate demand?
Personal consumption falls as workers become concerned about
future employment prospects.
Imports decrease due to increased foreign prices.
Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
the increase in the:
unemployment rate.
productivity of workers.
price level.
c. Which policy action should the federal government enact?
Increase personal income tax rates
Decrease real...
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Personal consumption falls as workers become concerned about
future employment prospects.
Imports decrease due to increased foreign prices.
Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
the increase in the:
unemployment rate.
productivity of workers.
price level.
c. Which policy action should the federal government enact?
Increase personal income tax rates
Decrease real...
increase or decrease
increase or decrease
rise or fall
rise or fall
Question 5 8 pts Group 2. Supply and Demand of Bonds Market and interest Rate determination 2. The outbreak of Corona virus sparked the greatest global recession since 2008-2009 Great Recession. Millions of worker lost their jobs during the pandemic crisis in the past two months. U.S. Senate passed $2.2 trillion relief bill to save the economic devastation. In the developing scenario, U.S. Bonds market will see alan)...
HELP
drop down menu choices:
increase
decrease
remains unchanged
The figure to the right depicts the bond market. Show what will happen to interest rates if prices in the bond market become more volatile. 1. Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line. 2. Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point '2'. Carefully follow the instructions above, and only draw...
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