An Increase in the Expected Return on Bonds Causes the _____

question 57

Multiple Choice

An increase in the expected return on bonds causes the _____ bonds to shift and for equilibrium interest rates to

• A) demand for, rise.
• B) demand for, fall.
• C) supply of, rise.
• D) supply of, fall.

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Definitions:

FIFO Inventory Method

A method of accounting for inventory that assumes the first items placed in inventory are the first sold.

Balance Sheet

A document that provides a snapshot of a corporation's assets, debts, and shareholder's equity at a given point in time.

Increasing Unit Costs

Refers to the situation where the cost to produce or purchase a single unit of product rises, often due to inflation, increased material costs, or labor costs.

Direct Material Costs

Costs that are directly attributable to the production of goods, such as raw materials.