Holding the expected return on bonds constant, an increase in the expected return on common stocks would ________ the demand for bonds, shifting the demand curve to the ________
A) decrease; left
B) decrease; right
C) increase; left
D) increase; right
A
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The legislation passed in 2010 that was intended to reform regulation of the financial system was the
A) Glass-Steagall Act. B) Wall Street Reform and Consumer Protection Act. C) Sarbanes-Oxley Act. D) Federal National Mortgage Act.
As the number of available substitutes for a good increases, the price elasticity of demand for the good will increase as well
Indicate whether the statement is true or false
Over the past 20 years, foreign financial investment in the United States has
A) increased significantly. B) decreased significantly. C) remained fairly consistent. D) become negative.
When the expected real rate of interest declines, ceteris paribus, we expect:
a. more investment projects will be undertaken. b. lenders will need to lower their average default rate to maintain their profit margins. c. firms will borrow less and cut back on their investment projects. d. individuals will steer clear of equity markets.