Suppose that a new bond rating service is established that specializes in rating municipal bonds that had not previously been rated. The likely result for municipal bonds would be a decrease in the equilibrium interest rate. a shift to the left in the supply curve for municipal bonds. an increase in the equilibrium interest rate. a shift to the left in the demand curve for municipal bonds.
Suppose that a new bond rating service is established that specializes in rating municipal bonds that had not previously been rated. The likely result for municipal bonds would be a decrease in the equilibrium interest rate. a shift to the left in the supply curve for municipal bonds. an increase in the equilibrium interest rate. a shift to the left in the demand curve for municipal bonds.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 for municipal bonds would be
a decrease in the equilibrium interest rate.
a shift to the left in the supply curve for municipal bonds.
an increase in the equilibrium interest rate.
a shift to the left in the demand curve for municipal bonds.
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