When the Treasury bond market becomes less liquid,other things equal,the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________.
A)right;right
B)right;left
C)left;right
D)left;left

Question

Quizplus · Accepted Answer

When the Treasury bond market becomes less liquid, investors may find corporate bonds more attractive, shifting the demand curve for corporate bonds to the right. Conversely, the demand for Treasury bonds would decrease, shifting their demand curve to the left.

When the Treasury Bond Market Becomes Less Liquid,other Things Equal,the