Everything else held constant,an increase in the riskiness of bonds relative to alternative assets causes the demand for bonds to ________ and the demand curve to shift to the ________.
A)rise;right
B)rise;left
C)fall;right
D)fall;left

Question

Quizplus · Accepted Answer

An increase in the riskiness of bonds relative to alternative assets makes investors less inclined to invest in bonds, causing the demand for bonds to decrease. This shift causes the demand curve to shift to the left.

Everything Else Held Constant,an Increase in the Riskiness of Bonds