Everything else held constant,when prices in the art market become more uncertain
A)the demand curve for bonds shifts to the left and the interest rate rises.
B)the demand curve for bonds shifts to the left and the interest rate falls.
C)the demand curve for bonds shifts to the right and the interest rate falls.
D)the supply curve for bonds shifts to the right and the interest rate falls.

Question

Quizplus · Accepted Answer

When prices in the art market become more uncertain, investors may seek safer investments like bonds, increasing the demand for bonds. This shift in demand to the right typically results in a lower interest rate as more people are willing to lend their money by purchasing bonds.

Everything Else Held Constant,when Prices in the Art Market Become