Question: Everything else held constant, if the default risk on ABC bonds increase relative to the default risk on CBS bonds, the demand curve for CBS

Everything else held constant, if the default risk on ABC bonds increase relative to the default risk on CBS bonds, the demand curve for CBS bonds shifts to the ________ and the equilibrium interest rate on CBS bonds ________.

A) right; rises

B) left; falls

C) right; falls

D) left; rises

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