Question
What does this headline tell us about the demand for Spanish government bonds? A. That demand was increasing, causing interest rates to rise. B. That
What does this headline tell us about the demand for Spanish government bonds?
A. That demand was increasing, causing interest rates to rise.
B. That demand for these bonds is upward sloping.
C. That demand was decreasing, causing interest rates to rise.
D. No conclusions regarding the demand for Spanish bonds can be made.
Based on the headline above the price of Spanish government bonds were ?? since the price of a bond and its yield are ??related
The article states, in part, that Spain is "reaping the bitter harvest of a decade of ambitious and often unchecked spending on infrastructure and services." This observation directly relates to the headline "Spanish Bond Yields Soar" since: (Check all that apply)
A. this ambitious spending resulted in significantly greater tax revenues during the recession.
B. investors worry about whether Spain will be able to pay off its large spending programs without drastic action.
C. increased spending resulted in unmanageable levels of government debt.
D. unchecked spending can increase the default risk on government bonds.
E. spending on infrastructure instead of social programs increases the default risk on government bonds.
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