If the Expected Gains on Stocks Rise, While the Expected

question 51

Multiple Choice

If the expected gains on stocks rise, while the expected returns on bonds do not change, then

• A)the demand curve for bonds will shift to the right.
• B)the supply curve for loanable funds will shift to the right.
• C)the equilibrium interest rate will fall.
• D)the equilibrium interest rate will rise.

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Definitions:

House

A structure serving as a dwelling for one or more persons, especially for a family.

True Lease

A lease agreement that qualifies as a genuine lease under applicable law, allowing the lessor to retain ownership and tax benefits of the leased asset.

Boarding House

A residence where individuals can rent rooms, often with shared facilities, typically including at least one meal a day.

Lease Expired

Marks the termination of a rental agreement or contract upon reaching its end date, after which the lessee must vacate the property unless a renewal agreement is made.