Discussion:
1. The supply curve for bonds would be shifted to the left by
2. A one-year discount bond with a face value of $1000 that is currently selling for $900 has an interest rate of
3. Suppose that a new bond rating service is established that specializes in rating municipal bonds that had not previously been rated. The likely result would be
4. During a period of economic expansion, when expected profitability is high,
5. Suppose that Congress passes an investment tax credit. The likely result will be
6. If the federal government decreases its spending and doesn't decrease taxes, the bond supply shifts to the
7. If the expected gains on stocks rise, while the expected returns on bonds do not change, then
8. Businesses typically issue bonds to finance
9. Which of the following would NOT cause the demand curve for bonds to shift?
10. As a result of higher expected inflation