Keynes Assumed That the Expected Return on Bonds Is Determined

question 8

Multiple Choice

Keynes assumed that the expected return on bonds is determined by

• A)the interest rate on the bond.
• B)the interest rate on the bond adjusted for expectations of capital gains or losses on the bond.
• C)the interest rate on the bond adjusted for the expected inflation rate.
• D)the expected inflation rate adjusted for expectations of capital gains or losses on the bond.

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Definitions:

American Federation of Labor

An early national federation of labor unions in the United States, founded in 1886, that focused on skilled workers.

Ida B. Wells

An African American journalist, abolitionist, and feminist who led an anti-lynching crusade in the United States in the 1890s.

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The condition in which an entity or nation has sufficient resources to sustain its operations without relying on external support.

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The principle or system where citizens have the authority to decide on laws and policies directly or through elected representatives, embodying democracy.