-In the Figure Above,a Factor That Could Cause the Demand

question 146

Multiple Choice

-In the figure above,a factor that could cause the demand for bonds to shift to the right is:

• A) an increase in the riskiness of bonds relative to other assets.
• B) an increase in the expected rate of inflation.
• C) expectations of lower interest rates in the future.
• D) a decrease in wealth.

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Definitions:

Prompt Payment Discount

A discount offered by sellers to buyers for paying their bills promptly, usually defined as within a specified number of days.

Borrowing Rate

The interest rate or cost that a borrower pays to a lender to borrow money.

Long-Term Projects

Ventures or initiatives with a timeline extending over several years, typically requiring substantial capital investment and planning.

Short-Term Financing

Borrowing options intended for a short period, typically less than a year, to cover immediate needs.