If Fluctuations in Interest Rates Become Smaller,then,other Things Equal,the Demand

question 14

Multiple Choice

If fluctuations in interest rates become smaller,then,other things equal,the demand for stocks ________ and the demand for long-term bonds ________.

• A)increases;increases
• B)increases;decreases
• C)decreases;decreases
• D)decreases;increases

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Definitions:

Plant Asset

Plant assets are long-term tangible assets that are used in the production or supply of goods and services, such as machinery, buildings, and vehicles.

Office Equipment

Tangible property (such as desks, chairs, computers, etc.) used in an office environment to perform work activities.

Patent

A legal right granted by a government authority to an inventor to exclude others from making, using, or selling an invention for a certain period of time.

Merchandise Inventory

Goods that a company has in stock and available for sale to customers.