ECO4223 Exam 2 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
During a recession, the supply of bonds______, and the supply curve shifts
to the___________, everything else held constant.
a. increases; right
b. decreases; left
c. increases; left
d. decreases; right - 🧠 ANSWER ✔✔decreases; left
In the bond market, the market equilibrium shows the market-clearing
________ and market-clearing ________.'
a. price; interest rate
b. price; deposit
c. interest rate; premium
d. interest rate; deposit - 🧠 ANSWER ✔✔price; interest rate
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Everything else held constant, when stock prices become less volatile, the
demand curve for bonds shifts to the _________, and the interest rate
________________.
a. right; rises
b. left;falls
c. left; rises
d. right; falls - 🧠 ANSWER ✔✔left; rises
When the expected inflation rate increases, the demand for bonds
________, the supply of bonds ________, and the interest rate ________,
everything else held constant.
a. decreases, increases, rises
b. decreases, decreases, falls
c. increases, increases, rises
d. increases, decreases, falls - 🧠 ANSWER ✔✔decreases, increases, rises
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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
, a. falls; left
b. rises, right
c. falls, right
d. rises, left - 🧠 ANSWER ✔✔rises, right
When the expected inflation rate increases, the real cost of borrowing
______ and bond supply, everything else held constant.
a. increases, decreases
b. decreases, increases
c. increases, increases
d. decreases, decreases - 🧠 ANSWER ✔✔decreases, increases
If the nominal rate of interest is 2 percent and the expected inflation rate is -
10 percent, the real rate of interest is
a. 12 percent
b. 2 percent
c. 8 percent
d. 10 percent - 🧠 ANSWER ✔✔12 percent
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions with 100% Correct Answers |
Latest Update
During a recession, the supply of bonds______, and the supply curve shifts
to the___________, everything else held constant.
a. increases; right
b. decreases; left
c. increases; left
d. decreases; right - 🧠 ANSWER ✔✔decreases; left
In the bond market, the market equilibrium shows the market-clearing
________ and market-clearing ________.'
a. price; interest rate
b. price; deposit
c. interest rate; premium
d. interest rate; deposit - 🧠 ANSWER ✔✔price; interest rate
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Everything else held constant, when stock prices become less volatile, the
demand curve for bonds shifts to the _________, and the interest rate
________________.
a. right; rises
b. left;falls
c. left; rises
d. right; falls - 🧠 ANSWER ✔✔left; rises
When the expected inflation rate increases, the demand for bonds
________, the supply of bonds ________, and the interest rate ________,
everything else held constant.
a. decreases, increases, rises
b. decreases, decreases, falls
c. increases, increases, rises
d. increases, decreases, falls - 🧠 ANSWER ✔✔decreases, increases, rises
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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, a. falls; left
b. rises, right
c. falls, right
d. rises, left - 🧠 ANSWER ✔✔rises, right
When the expected inflation rate increases, the real cost of borrowing
______ and bond supply, everything else held constant.
a. increases, decreases
b. decreases, increases
c. increases, increases
d. decreases, decreases - 🧠 ANSWER ✔✔decreases, increases
If the nominal rate of interest is 2 percent and the expected inflation rate is -
10 percent, the real rate of interest is
a. 12 percent
b. 2 percent
c. 8 percent
d. 10 percent - 🧠 ANSWER ✔✔12 percent
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
