A(n)________ in the Liquidity of Corporate Bonds Will ________ the Price

question 98

Multiple Choice

A(n) ________ in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the yield on corporate bonds,all else equal.

• A)increase;increase;decrease
• B)increase;decrease;decrease
• C)decrease;increase;increase
• D)decrease;decrease;decrease

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Definitions:

Aggregate Demand

The total demand for goods and services within a particular market.

Tax Cut

A reduction in the amount of taxes imposed by a government on its citizens.

Government Expenditures

Spending by the government sector including spending on goods and services, public works, and social programs.

Macroeconomic Policy

Strategies implemented by governments to influence the economy's overall performance by adjusting economic factors like interest rates, taxation, and public spending.