Question

If the expected gains on stocks rise, while the expected returns on bonds do not change, then (points : 1) the demand curve for bonds will shift to the right. the supply curve for loanable funds will shift to the right. the equilibrium interest rate will fall. the equilibrium interest rate will rise.

Answer 1

The correct answer to this question is "the demand curve for bonds will shift to the right." If the expected gains on stocks rise, while the expected returns on bonds do not change, then the demand curve for bonds will shift to theright. Hope this helps answer your question.