In Keynes's Liquidity Preference Framework,as the Expected Return on Bonds

question 99

Multiple Choice

In Keynes's liquidity preference framework,as the expected return on bonds increases (holding everything else unchanged) ,the expected return on money ________,causing the demand for ________ to fall.

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

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Definitions:

Treasury Note

A type of government bond issued by the U.S. Department of the Treasury with intermediate maturities ranging from 1 to 10 years.

Settlement

The process of transferring ownership of securities from the seller to the buyer and the corresponding payment from the buyer to the seller.

Accrued Interest

Interest that has been incurred but not yet paid, often considered in bond pricing and transactions.

Financial Press

Media outlets that provide news, analysis, and commentary on financial and economic subjects, including markets and business trends.