If interest rates are expected to rise in the future, the demand for long-term bonds _____ and the demand curve shifts to the _____.
举一反三
- When bonds become more widely traded, and as a consequence the market becomes more liquid, the demand curve for bonds shifts to the _________ and the interest rate _________.
- When the expected inflation rate decreases, the demand for bonds _________, the supply of bonds _________, and the interest rate _________.
- When a municipal bond is given tax-free status, the demand for Treasury bonds shifts _________, and the interest rate on Treasury bonds _________
- 【单选题】An upward-sloping term structure of interest rates indicates that: A. longer-term rates are higher than shorter-term rates B. investors should expect interest rates to decline in the future C. short and intermediate term rates are real rates while long term rates are nominal rates D. the Fed is expected to decrease rates in the near term E. the larger the investment in dollars, the higher the interest rate paid
- According to the pure expectations theory, an upward-sloping yield curve implies: A: interest rates are expected to decline in the future. B: interest rates are expected to increase in the future. C: longer-term bonds are riskier than short-term bonds.