2) If the expected return on U.S. T-Bonds falls from 3 to 2 percent and the expected return on corporate bonds falls from 6 to 2 percent, then the expected return of US Treasury bonds bonds relative to corporate bonds and the demand for US Treasury A) falls; rises B) falls; falls C) rises; rises D) rises; falls

2) If the expected return on U.S. T-Bonds falls from 3 to 2 percent and the expected return on corporate bonds falls from 6 to 2 percent, then the expected return of US Treasury bonds bonds relative to corporate bonds and the demand for US Treasury A) falls; rises B) falls; falls C) rises; rises D) rises; falls

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter20: Monetary Policy

Section: Chapter Questions

Problem 3SQP

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