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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
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 a shift to the left in the demand curve for bonds. a shift to the left in the supply curve for loanable funds. a decrease in the equilibrium interest rate. O a decrease in the equilibrium price of bonds. QUESTION 20 17 Which of the following would NOT cause a change in the desire to borrow at every interest rate? A change in the price of bonds. A decrease in the U.S. government deficit level. The economy enters an expansionary phase of the business cycle. A decrease in the corporate profits tax. QUESTION 21 1 Which of the following would lead to an increase in bond supply? An increase in government spending relative to revenue An increase in corporate taxes A decrease in expected inflation An improvement in consumer confidence
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