Economics · Supply and Demand

Consider the dynamics of supply and demand for high-yield corporate bonds: Statement I: An increase in the general corporate tax rate will likely cause the supply curve for bonds to shift to the right as companies seek more debt financing to offset tax hits. Statement II: If investors expect higher inflation in the future, the demand curve for fixed-rate bonds will shift to the left as the real return is expected to diminish. Statement III: A change in the technology of bond trading that reduces transaction costs for issuers will cause a movement along the supply curve rather than a shift. Statement IV: The point where the demand and supply curves intersect represents a state where there is neither a surplus nor a shortage in the market. Which of the above statements are correct?