lls t6 the right and the demand curve shifts to the left which factor causes those shifts? ABusiness cycle recession B. Increase in expected inflation C. Decrease in expected inflation D. Business cycle boom 31. An decrease in marginal tax rates would likely have the effect of demand for municipal bonds andthe demand for U.S. government bonds. the B. decreasing; decreasing C. increasing: increasing D. decreasing; increasing 32. How does an decrease in stock volatility affect interest rates? A. Stock volatility has nothing to do with interest rates. B. Bonds are relatively more risky compared to stocks, decreasing bond demand thereby increasing interest rates. C. Bonds are relatively less risky compared to stocks, increasing bond demand thereby decreasing interest rates. 33. What does a downward yield curve say about the condition of the economy? A. High economic growth. B. Recession. C. Low economic growth. D. Decline in economic growth and then an increase in economic growth. 34. Which of the following will Not increase the demand for an asset? A. Wealth increases B. The asset's expected return rises relative to other assets. C. The asset's liquidity rises relative to other assets. D. The asset's risk increases relative to other assets. 35. Use Table & to answer questions 3s and 36. The Fed prints $139 which is used to buy US Treasuries. The amount is spent and then deposited into Bank A. The reserve requirement is L 0%. What are the reserves in E? Page 8 ot 12