4. Keynes hypothesized that the speculative component of money demand was primarily determined by the level of

Typically,
yield curves are

Bonds
with relatively low risk of default are called ________ securities
and have a rating of Baa  


(or
BBB) and above; bonds with ratings below Baa (or BBB) have a higher
default risk and are  


called
________.

)
Which of the following statements are true?

Which
of the following statements are true?

An
increase in default risk on corporate bonds ________ the demand for
these bonds, but  


________
the demand for default-free
bonds, everything else held constant.

The
spread between the interest rates on bonds with default risk and
default-free
bonds is  


called
the

When
the growth rate of the money supply increases, interest rates end up
being permanently  


lower
if

In
Keynesʹs
liquidity preference framework, if there is excess demand for money,
there is

Higher
government deficits ________ the supply of bonds and shift the supply
curve to the  


________,
everything else held constant.

The
reduction of brokerage commissions for trading common stocks that
occurred in 1975  


caused
the demand for bonds to ________ and the demand curve to shift to the
________.