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What happens to the equilibrium price of bonds

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Reference no: EM132985887

Problem 1: 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

Problem 2: What happens to the equilibrium price of bonds if the supply of bonds shifts leftward?

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

Problem 3: 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 does not change
B. We do not have enough information to answer this question
C. Bond price increases
D. Bond price declines

Reference no: EM132985887

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