-In the Figure Above,the Price of Bonds Would Fall from P1

question 35

Multiple Choice

-In the figure above,the price of bonds would fall from P1 to P2 if ________.

• A) inflation is expected to increase in the future
• B) interest rates are expected to fall in the future
• C) the expected return on bonds relative to other assets is expected to increase in the future
• D) the riskiness of bonds falls relative to other assets

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