Which of the Following Statements Is CORRECT

question 15

Multiple Choice

Which of the following statements is CORRECT?

• A) If expected inflation increases, interest rates are likely to increase.
• B) If individuals in general increase the percentage of their income that they save, interest rates are likely to increase.
• C) If companies have fewer good investment opportunities, 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.

---

Definitions:

Civil War

A war between factions or regions within the same country, often fought over political, social, or economic issues.

Land Reform

The process of redistributing land, typically from those who have a lot to those who have little, to ensure fairer distribution and utilization of land resources.

Rural African-Americans

Refers to the demographic group of African-Americans who live in rural areas, often dealing with distinct cultural, economic, and historical challenges compared to their urban counterparts.

Land Distribution

The allocation of land among individuals or groups, often a subject of contention in agrarian reforms and policies.