Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve...

1) If the possibility of a default increases because corporations begin to suffer losses, then the default risk on corporate bonds will ________, and the bonds\" returns will become ________ uncertain, meaning that the expected return on these bonds will decrease, everything else held constant.

A) increase; less

B) increase; more

C) decrease; less

D) decrease; more

2) Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________.

A) right; right

B) right; left

C) left; right

D) left; left