During a Period of Economic Expansion,when Expected Profitability Is High

question 113

Multiple Choice

During a period of economic expansion,when expected profitability is high

• A) the demand curve for bonds shifts to the left.
• B) the supply curve of bonds shifts to the right.
• C) the equilibrium interest rate falls.
• D) the equilibrium price of bonds rises.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members from its profits.

Net Income

The amount of money a company effectively earns as profit after reducing its revenue by expenses and taxes.

Trial Balance

A worksheet for accounting where the total balances of all ledgers are arranged into equal debit and credit columns.

Trial Balance

A report that lists all the balances of a company's general ledger accounts to verify that debits equal credits.