Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock ________ relative to U.S

Treasury bonds and the demand for GE stock ________. A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls


A

Economics

You might also like to view...

The factor market can best be described as where

A) households buy goods and services. B) firms buy goods and services. C) firms buy the services of labor, land and capital. D) governments sell goods and services.

Economics

When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank, then

A) the liabilities of the First National Bank increase by $10. B) the reserves of the First National Bank increase by $ 10. C) the liabilities of Citibank increase by $10. D) the assets of Citibank fall by $10.

Economics

Spending VCU4 on real-world goods and services causes the nation's:

a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.

Economics

The corporate hierarchy is the most complex and over managed in

A. Japan. B. South Korea. C. France. D. United States

Economics