Based on Our Understanding of the Determinants of the Interest

question 39

Multiple Choice

Based on our understanding of the determinants of the interest rate and bond prices,we know that a reduction in income will cause

• A)an increase in bond prices and an increase in the interest rate (i).
• B)a reduction in bond prices and an increase in i.
• C)an increase in bond prices and a reduction in i.
• D)a reduction in bond prices and a reduction in i.
• E) none of the above

---

Definitions:

Legal Arguments

Reasoning and discussions based on law and legal principles used in courts to make or defend against claims.

Criminal Act

An action that violates the laws of a state or country, which is punishable by the government.

HCR-20

A risk assessment tool used to evaluate the risk of violence in individuals, particularly those with a history of violence.

Historical Factors

Elements from the past that have influenced or caused current conditions or situations.