Suppose that a new bond rating service is established that specializes in rating municipal bonds that had not previously been rated. The likely result would be
A) a shift to the right in the demand curve for bonds.
B) a shift to the left in the supply curve for loanable funds.
C) an increase in the equilibrium interest rate.
D) a decrease in the equilibrium interest rate.
Correct Answer:
Verified
Q49: If the federal government decreases its purchases
Q50: Businesses typically issue bonds to finance
A)their inventories.
B)payments
Q51: Investors value liquidity in an asset because
A)liquid
Q52: The demand curve for bonds would be
Q53: During a period of economic expansion, when
Q55: If the government were to simultaneously cut
Q56: If the government increases taxes while holding
Q57: The demand curve for bonds would be
Q58: If a government's income tax receipts exceed
Q59: The supply curve for loanable funds would
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents