Which of the Following Is More Likely to Adversely Affect

question 53

Multiple Choice

Which of the following is more likely to adversely affect long-term bond prices?

• A) a forecast of lower inflation in the future.
• B) a forecast of a slower economy next year.
• C) a forecast of higher inflation in the future.
• D) a forecast of lower government budget deficits.

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Definitions:

Business Decision

A choice made by a business in pursuit of its objectives, often involving resource allocation.

Material

The raw inputs or supplies used in the manufacturing of goods or products.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Creditor

An individual or institution that lends money or extends credit to another party.