If the Expected Return on Bonds Increases,all Else Equal,the Demand

question 4

Multiple Choice

If the expected return on bonds increases,all else equal,the demand for bonds increases,the price of bonds ________,and the interest rate ________.

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

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Definitions:

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors of deceased workers.

Personal Income Tax

A tax levied on individuals' earnings, including wages, salaries, and investment income, often progressive in nature.

Federal Expenditures

The spending by the federal government, including spending on defense, education, public welfare, and infrastructure projects.

National Debt

is the total amount of money that a country's government has borrowed, by various means, and has not yet repaid.