An increase in the price of bonds will cause a decrease in the demand for bonds.

Name: An increase in the price of bonds will cause a decrease in the demand for bonds.
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

An increase in the price of bonds typically leads to a decrease in the yield (interest rate) of the bonds, not necessarily a decrease in demand. Demand for bonds is influenced by various factors including interest rates, economic outlook, and investors' risk tolerance, not just the price of bonds.

An Increase in the Price of Bonds Will Cause a Decrease