Author Question: During a period of economic expansion, when expected profitability is high, A) the demand curve ... (Read 92 times)

iveyjurea · **on:** Jun 30, 2018

During a period of economic expansion, when expected profitability is high,

A) the demand curve for bonds shifts to the left.
B) the supply curve of bonds shifts to the right.
C) the equilibrium interest rate falls.
D) the equilibrium price of bonds rises.

Question 2

The real return on bonds is

A) 0.
B) r.
C) R.
D) i.