The demand curve for bonds has the usual downward slope, indicating that at ________ pricesof the bond, everything else equal, the ________ is higher.

The supply curve for bonds has the usual upward slope, indicating that as the price ________,ceteris paribus, the ________ increases.

In the bond market, the market equilibrium shows the market -clearing ________ andmarket-clearing ________.

When the price of a bond is above the equilibrium price, there is an excess ________ bonds andprice will ________.

When the price of a bond is ________ the equilibrium price, there is an excess demand for bondsand price will ________.

When the interest rate on a bond is above the equilibrium interest rate, in the bond market thereis excess ________ and the interest rate will ________.

When the interest rate on a bond is ________ the equilibrium interest rate, in the bond marketthere is excess ________ and the interest rate will ________.

A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded iscalled a condition of excess supply; because people want to sell ________ bonds than otherswant to buy, the price of bonds will ________.

If the price of bonds is set ________ the equilibrium price, the quantity of bonds demandedexceeds the quantity of bonds supplied, a condition called excess ________.

A movement along the bond demand or supply curve occurs when ________ changes.

When the price of a bond decreases, all else equal, the bond demand curve ________.

During business cycle expansions when income and wealth are rising, the demand for bonds________ and the demand curve shifts to the ________, everything else held constant.

Everything else held constant, when households save less, wealth and the demand for bonds________ and the bond demand curve shifts ________.

Everything else held constant, if interest rates are expected to fall in the future, the demand forlong-term bonds today ________ and the demand curve shifts to the ________.

Holding the expected return on bonds constant, an increase in the expected return on commonstocks would ________ the demand for bonds, shifting the demand curve to the ________.

Everything else held constant, an increase in expected inflation, lowers the expected return on________ compared to ________ assets.

Everything else held constant, an increase in the riskiness of bonds relative to alternative assetscauses the demand for bonds to ________ and the demand curve to shift to the ________.

Everything else held constant, when stock prices become less volatile, the demand curve forbonds shifts to the ________ and the interest rate ________.

Everything else held constant, when stock prices become ________ volatile, the demand curvefor bonds shifts to the ________ and the interest rate ________.

Everything else held constant, an increase in the liquidity of bonds results in a ________ indemand for bonds and the demand curve shifts to the ________.

Everything else held constant, when bonds become less widely traded, and as a consequence themarket becomes less liquid, the demand curve for bonds shifts to the ________ and the interestrate ________.

The reduction of brokerage commissions for trading common stocks that occurred in 1975caused the demand for bonds to ________ and the demand curve to shift to the ________.

Factors that decrease the demand for bonds include

During a recession, the supply of bonds ________ and the supply curve shifts to the ________,everything else held constant.

In a business cycle expansion, the ________ of bonds increases and the ________ curve shifts tothe ________ as business investments are expected to be more profitable.

When the expected inflation rate increases, the real cost of borrowing ________ and bond supply________, everything else held constant.

An increase in the expected inflation rate causes the supply of bonds to ________ and the supplycurve to shift to the ________, everything else held constant.

Higher government deficits ________ the supply of bonds and shift the supply curve to the________, everything else held constant.

Factors that can cause the supply curve for bonds to shift to the right include

When the inflation rate is expected to increase, the ________ for bonds falls, while the ________curve shifts to the right, everything else held constant.

When the expected inflation rate increases, the demand for bonds ________, the supply of bonds________, and the interest rate ________, everything else held constant.

Everything else held constant, when the inflation rate is expected to rise, interest rates will________; this result has been termed the ________.

The economist Irving Fisher, after whom the Fisher effect is named, explained why interest rates________ as the expected rate of inflation ________, everything else held constant.

Everything else held constant, during a business cycle expansion, the supply of bonds shifts tothe ________ as businesses perceive more profitable investment opportunities, while thedemand for bonds shifts to the ________ as a result of the increase in wealth generated by theeconomic expansion.

When the economy slips into a recession, normally the demand for bonds ________, the supplyof bonds ________, and the interest rate ________, everything else held constant.

When an economy grows out of a recession, normally the demand for bonds ________ and thesupply of bonds ________, everything else held constant.

Deflation causes the demand for bonds to ________, the supply of bonds to ________, and bondprices to ________, everything else held constant.

In the 1990s Japan had the lowest interest rates in the world due to a combination of

When the interest rate changes,

The interest rate falls when either the demand for bonds ________ or the supply of bonds________.

When the government has a surplus, as occurred in the late 1990s, the ________ curve of bondsshifts to the ________, everything else held constant.

A decrease in the brokerage commissions in the housing market from 6% to 5% of the sales pricewill shift the ________ curve for bonds to the ________, everything else held constant.

When rare coin prices become volatile, the ________ curve for bonds shifts to the ________,everything else held constant.

If people expect real estate prices to increase significantly, the ________ curve for bonds willshift to the ________, everything else held constant.

Everything else held constant, when prices in the art market become more uncertain,

Everything else held constant, when real estate prices are expected to decrease

Everything else held constant, when the government has higher budget deficits

If stock prices are expected to climb next year, everything else held constant, the ________ curvefor bonds shifts ________ and the interest rate ________.

If prices in the bond market become more volatile, everything else held constant, the demandcurve for bonds shifts ________ and interest rates ________.

If brokerage commissions on stocks fall, everything else held constant, the demand for bonds________, the price of bonds ________, and the interest rate ________.

If the expected return on bonds increases, all else equal, the demand for bonds increases, theprice of bonds ________, and the interest rate ________.

In the figure above, a factor that could cause the supply of bonds to shift to the right is:

In the figure above, a factor that could cause the demand for bonds to decrease (shift to the left)is:

In the figure above, the price of bonds would fall from P 1 to P2

In the figure above, a factor that could cause the supply of bonds to increase (shift to the right)is:

In the figure above, a factor that could cause the demand for bonds to shift to the right is:

In the figure above, the price of bonds would fall from P 2 to P1 if

In Keynesʹs liquidity preference framework, individuals are assumed to hold their wealth in twoforms:

In Keynesʹs liquidity preference framework,

In Keynesʹs liquidity preference framework, if there is excess demand for money, there is

The bond supply and demand framework is easier to use when analyzing the effects of changesin ________, while the liquidity preference framework provides a simpler analysis of the effectsfrom changes in income, the price level, and the supply of ________.

Keynes assumed that money has ________ rate of return.

In his Liquidity Preference Framework, Keynes assumed that money has a zero rate of return;thus,

In Keynesʹs liquidity preference framework, as the expected return on bonds increases (holdingeverything else unchanged), the expected return on money ________, causing the demand for________ to fall.

The opportunity cost of holding money is

An increase in the interest rate

If there is an excess supply of money

When the interest rate is above the equilibrium interest rate, there is an excess ________ moneyand the interest rate will ________.

In the market for money, an interest rate below equilibrium results in an excess ________ moneyand the interest rate will ________.

In the Keynesian liquidity preference framework, an increase in the interest rate causes thedemand curve for money to ________, everything else held constant.

A lower level of income causes the demand for money to ________ and the interest rate to________, everything else held constant.

When real income ________, the demand curve for money shifts to the ________ and the interestrate ________, everything else held constant.

A business cycle expansion increases income, causing money demand to ________ and interestrates to ________, everything else held constant.

In the Keynesian liquidity preference framework, a rise in the price level causes the demand formoney to ________ and the demand curve to shift to the ________, everything else heldconstant.

When the price level ________, the demand curve for money shifts to the ________ and theinterest rate ________, everything else held constant.

A rise in the price level causes the demand for money to ________ and the interest rate to________, everything else held constant.

When the price level falls, the ________ curve for nominal money ________, and interest rates________, everything else held constant.

A decline in the expected inflation rate causes the demand for money to ________ and thedemand curve to shift to the ________, everything else held constant.

When the Fed decreases the money stock, the money supply curve shifts to the ________ and theinterest rate ________, everything else held constant.

When the Fed ________ the money stock, the money supply curve shifts to the ________ and theinterest rate ________, everything else held constant.

________ in the money supply creates excess ________ money, causing interest rates to________, everything else held constant.

________ in the money supply creates excess demand for ________, causing interest rates to________, everything else held constant.

When the price level falls, the ________ curve for nominal money ________, and interest rates________, everything else held constant.

In the figure above, one factor not responsible for the decline in the demand for money is

In the figure above, the decrease in the interest rate from i 1 to i2 can be explained by

In the figure above, the factor responsible for the decline in the interest rate is

In the figure above, the decrease in the interest rate from i 1 to i2 can be explained by

Milton Friedman called the response of lower interest rates resulting from an increase in themoney supply the ________ effect.

Of the four effects on interest rates from an increase in the money supply, the initial effect is,generally, the

In the liquidity preference framework, a one-time increase in the money supply results in aprice level effect. The maximum impact of the price level effect on interest rates occurs

Of the four effects on interest rates from an increase in the money supply, the one that works inthe opposite direction of the other three is the

It is possible that when the money supply rises, interest rates may ________ if the ________effect is more than offset by changes in income, the price level, and expected inflation.

When the growth rate of the money supply increases, interest rates end up being permanentlylower if

When the growth rate of the money supply is increased, interest rates will fall immediately if theliquidity effect is ________ than the other money supply effects and there is ________adjustment of expected inflation.

If the Fed wants to permanently lower interest rates, then it should raise the rate of moneygrowth if

If the liquidity effect is smaller than the other effects, and the adjustment to expected inflation isslow, then the

If the liquidity effect is smaller than the other effects, and the adjustment to expected inflation isimmediate, then the

In the figure above, illustrates the effect of an increased rate of money supply growth at timeperiod 0. From the figure, one can conclude that the

In the figure above, illustrates the effect of an increased rate of money supply growth at timeperiod 0. From the figure, one can conclude that the

The figure above illustrates the effect of an increased rate of money supply growth at timeperiod T0 . From the figure, one can conclude that the

The figure above illustrates the effect of an increased rate of money supply growth at timeperiod T0 . From the figure, one can conclude that the

The figure above illustrates the effect of an increased rate of money supply growth at timeperiod T0 . From the figure, one can conclude that the

The figure above illustrates the effect of an increased rate of money supply growth at timeperiod T0 . From the figure, one can conclude that the

Interest rates increased continuously during the 1970s. The most likely explanation is

In the loanable funds framework, the ________ curve of bonds is equivalent to the ________curve of loanable funds.

In the loanable funds framework, the ________ is measured on the vertical axis.

When gold prices become more volatile, the ________ curve for gold shifts to the ________;________ the price of gold.

Discovery of new gold in Alaska will ________ the ________ of gold, ________ its price,everything else held constant.

An increase in the expected inflation rate will ________ the ________ for gold, ________ its price,everything else held constant.

The price of gold should be ________ to the expected inflation rate.

Both the CAPM and APT suggest that an asset should be priced so that it has a higher expectedreturn

In contrast to the CAPM , the APT assumes that there can be several sources of ________ thatcannot be eliminated through diversification.