Everything else held constant, when stock prices become less volatile, the demand curve for bonds shifts to the ________ and

Question

Tju [1.3M]

3 years ago

5

Everything else held constant, when stock prices become less volatile, the demand curve for bonds shifts to the ________ and

the interest rate ________.

Social Studies

1 answer:

forsale [732] · Answer 1 · 2022-04-23T02:00:33+03:00

Answer:

A). Left; Rises.

Explanation:

As per the given description, if the stock prices remain less elusive the demand curve for bonds shifts to 'left' while the interest rates 'rises' as in such a case, demand contracts or decreases due to several other factors except price of the good. This would lead to a steep rise in the 'interest rates' for possessing other assets as contraction or left shift in demand reflects the situation of recession where there is a considerable fall in income and consequently, the expenditure. Therefore, the people would require money to spend. Hence, <u>option A</u> is the correct answer.

Everything else held​ constant, when stock prices become less​ volatile, the demand curve for bonds shifts to the​ ________ and

Everything else held constant, when stock prices become less volatile, the demand curve for bonds shifts to the ________ and