There Is A(n) ____ Relationship Between the Value of a Bond

question 64

Multiple Choice

There is a(n) ____ relationship between the value of a bond and its required rate of return.

• A) direct
• B) distant
• C) inverse
• D) turgid

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Definitions:

Equilibrium GDP

Equilibrium GDP is the level of output where aggregate demand matches aggregate supply, resulting in a stable economy without tendencies to change.

Multiplier

A factor that quantifies how an increase in spending leads to an increase in national income and output, typically greater than the initial amount spent.

Balanced Budget

When federal tax receipts equal federal government spending.

Constitutional Amendment

A formal change or addition proposed and ratified according to the procedures specified in a constitution, altering the document's framework or principles.