A(n) ________ in the default of corporate bonds will _______ the price of corporate bonds and ______ the yield on corporate bonds, all else equal. A) increase; increase; increase B) increase; decrease; increase C) decrease; increase; increase D) decrease; decrease; decrease

During the Great Recession in 2008, the collapse of the subprime mortgage market reduced the liquidity of the Mortgage Backed Securities (MBS) market. Because of this, we would expect the yield on the MBS will ________ and the interest rate on Treasury securities will ________. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

When the expected inflation rate decreases, the real return of holding a treasury bond _______ and the demand for treasury bond _____, everything else held constant. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases

Everything else held constant, if the expected return on U.S. Treasury bonds falls from 8 to 7 percent, then the expected return of corporate bonds ________ relative to U.S. Treasury bonds and the demand for corporate bonds ________.

An increase in the expected inflation rate causes the supply of bonds to ________ and the supply curve to shift to the ________, everything else held constant.