1) Household wealth affects the equilibrium yield on bonds due to its impact on
a. the demand for bonds.
b. the supply of bonds.
c. the supply and demand for bonds.
d. Inflation has no effect on bond yields.
2) A change in the interest rate does not shift the supply of bonds. (True/False)
3) A change in the interest rate does not shift the demand for bonds. (True/False)