Which of the Following Statements Is CORRECT,other Things Held Constant

question 27

Multiple Choice

Which of the following statements is CORRECT,other things held constant?

• A) If companies have fewer good investment opportunities,interest rates are likely to increase.
• B) If individuals increase their savings rate,interest rates are likely to increase.
• C) If expected inflation increases,interest rates are likely to increase.
• D) Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy,hence the riskiness of all debt securities.
• E) Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.

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Definitions:

Alcohol

A psychoactive substance found in drinks such as beer, wine, and spirits, known chemically as ethanol, which can alter mood and behavior.

Deindividuated

A state where individuals in a group lose their sense of self-awareness and feel less accountable for their actions, often leading to atypical behavior.

Costume Party

A social gathering where individuals wear costumes and often masks to assume a specific character or identity for entertainment.

Violent

Characterized by strong, forceful actions or movements capable of causing damage or physical harm to others.