Copyright Law, Basics, and Fair Use. A quiz on various things about copyright law, the basics of it and its protective rights, and fair use basics. This is based on Dr. Shaw's PowerPoints and the Purdue Copyright Web Site. STUDY.
First, the prices of bonds and interest rates move in opposite directions. If interest rates decline, the price of a bond goes up, and if interest rates rise, the price of a bond declines. Second, bonds with longer maturities incur significantly higher interest rate risk than those with shorter maturities.
Now we increase the supply of money. That means people now hold more money, relative to bonds, than they used to and want to. In an effort to readjust their portfolios, they will seek to turn some of this money into bonds -- they'll buy bonds. This additional demand for bonds will drive up the price of bonds.