Question

5)

Real interest rates can be negative.

A. True

B. False

6)

If the equilibrium price of bonds increases, what happens to the associated interest rate?

	A.	Interest rate increases
	B.	Interest rate declines
	C.	Interest rate does not change

7)

What happens to the equilibrium price of bonds if the supply of bonds shifts leftward?

	A.	Bond price increases
	B.	Bond price declines
	C.	Bond price does not change

8)

Suppose the demand for bonds and the supply of bonds shifts leftward at the same time. What happens to the equilibrium price of bonds?

	A.	Bond price declines
	B.	Bond price increases
	C.	We do not have enough information to answer this question
	D.	Bond price does not change

Answer 1

5) Real interest rates can be negative

Answer : True

6) If the equilibrium price of bonds increases, what happens to the associated interest rate?

Answer :

B.	Interest rate declines

7) What happens to the equilibrium price of bonds if the supply of bonds shifts leftward?

A.	Bond price increases

8) Suppose the demand for bonds and the supply of bonds shifts leftward at the same time. What happens to the equilibrium price of bonds?

B.	Bond price increases