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Paul [167]
3 years ago
6

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 ________.
Business
1 answer:
poizon [28]3 years ago
5 0

Answer: right; left

Explanation:

<em>When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the </em><em><u>right</u></em><em> and the demand curve for Treasury bonds shifts to the </em><em><u>left</u></em><em>.</em>

Liquidity is highly sought after in the bond market such that more liquid securities have a higher demand than less liquid securities.

Should Treasury bills become less liquid, their demand would decrease which would result in the demand curve for treasury bills shifting to the left.

More people would then switch over to Corporate bonds which would have more liquidity. The increase in demand for corporate bonds will lead to the demand curve for corporate bonds shifting to the right.  

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Assume for this question that herman has 55 employees. when herman asks sally about jake's ability to see, what would be conside
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