Everything Else Held Constant,if the Federal Government Were to Guarantee

question 46

Multiple Choice

Everything else held constant,if the federal government were to guarantee today that it will pay creditors if a corporation goes bankrupt in the future,the interest rate on corporate bonds will ________ and the interest rate on Treasury securities will ________.

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

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Definitions:

Short and Long Run

Distinct time frames in economics and business planning, where "short run" involves immediate operations and "long run" focuses on future strategy and structural changes.

Strategic Opportunism

A way of making decisions that balances long-term goals with the flexibility to take advantage of immediate opportunities.

Long-Term Objectives

Goals that an organization aims to achieve over an extended period, typically beyond one year, to guide strategic direction and growth.

Short-Term Problems

Issues or challenges that need immediate resolution but do not typically affect long-term performance or strategy.