Everything Else Held Constant,if the Expected Return on U

question 74

Multiple Choice

Everything else held constant,if the expected return on U.S. Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent,then the expected return of corporate bonds ________ relative to U.S. Treasury bonds and the demand for corporate bonds ________.

• A)rises;rises
• B)rises;falls
• C)falls;rises
• D)falls;falls

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Definitions:

Alternative Dispute Resolution Act

Legislation that provides for the resolution of disputes through methods other than litigation, such as arbitration or mediation.

Federal District Court

The general trial courts of the United States federal court system where civil and criminal cases are heard and decided.

ADR

Stands for Alternative Dispute Resolution; it is a set of procedures such as mediation and arbitration for resolving disputes outside the traditional judicial system.

Binding Arbitration Clause

A contract agreement requiring the parties to resolve disputes through an arbitration process rather than through litigation in court.