Everything Else Held Constant,if Interest Rates Are Expected to Fall

question 129

Multiple Choice

Everything else held constant,if interest rates are expected to fall in the future,the demand for long-term bonds today ________ and the demand curve shifts to the ________.

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

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Definitions:

Cash Dividends

Payments made by a company to its shareholders from its profits or reserves, representing a share of the corporate earnings.

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, repaying loans, and distributing dividends.

Fiscal Year

A one-year period used by governments and businesses for accounting and financial reporting, which may or may not align with the calendar year.

Depreciation Expense

Spreading out the expense of a physical asset over the period it's in use.