4. In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirementthe demand of reserves and causes the federal funds interest rate to , everything else held constant.

During
business cycle expansions when income and wealth are rising, the
demand for bonds  


________
and the demand curve shifts to the ________, everything else held
constant.

When
the interest rate on a bond is ________ the equilibrium interest
rate, in the bond market  


there
is excess ________ and the interest rate will ________.

Holding
everything else constant,  

If
gold becomes acceptable as a medium of exchange, the demand for gold
will ________ and  


the
demand for bonds will ________, everything else held constant.

If
housing prices are expected to increase, then, other things equal,
the demand for houses will  


________
and that of Treasury bills will ________.

An
increase in an assetʹs
expected return relative to that of an alternative asset, holding  


everything
else constant, ________ the quantity demanded of the asset.

Prices
and returns for ________ bonds are more volatile than those for
________ bonds,  


everything
else held constant.

If
you expect the inflation rate to be 4 percent next year and a one
year bond has a yield to  


maturity
of 7 percent, then the real interest rate on this bond is

When
the ________ interest rate is low, there are greater incentives to
________ and fewer  


incentives
to ________.

Which
of the following are generally true of all bonds?