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:

Fixture

A thing that was originally personal property and that has been actually or constructively affixed to the soil itself or to some structure legally a part of the land.

Abandoned Property

Property that is left by its owner who has no intention of returning or claiming ownership.

Producing

The act of creating, manufacturing, or otherwise bringing into existence a product or service.

Inheriting

The process by which assets, traditions, or genetic traits are received from predecessors or relatives after their death.