An increase in the tax rate on dividends, other things equal, is likely to result in a(n):
A) increased demand for bonds due to an increase in the expected return on bonds relative to stocks
B) increased supply of bonds due to an increase in the expected return on bonds relative to stocks
C) reduced demand for bonds due to a decrease in the expected return on bonds relative to stocks
D) reduced demand for bonds due to an increase in the expected return on bonds relative to stocks
A
You might also like to view...
If each of the parties to a contract controls a resource essential for the other's survival, opportunistic behavior by any of them will increase the value of the transaction
Indicate whether the statement is true or false
In a perfectly competitive market, long-run equilibrium requires which of the following?
a. Allocative efficiency and productive efficiency b. Allocative efficiency and zero profits c. Productive efficiency and zero profits d. Productive efficiency and elasticity
Excess reserves are
a. checking deposits that are included in the M1 money supply but not the M2. b. savings deposits that are included in the M2 money supply but not the M1. c. actual reserves held by banks that exceed the legal requirement. d. the portion of deposits that banks are required by the Fed to hold as reserves against their deposits.
If an excess quantity of labor demanded exists in a free market, there is a tendency for
A. quantity demanded to fall. B. quantity supplied to rise. C. the wage rate to fall. D. the wage rate to rise.