Everything Else Held Constant,if the Expected Return on Bonds Falls

question 40

Multiple Choice

Everything else held constant,if the expected return on 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 bonds and the demand for corporate bonds ________.

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

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Definitions:

Psychoanalysis

A therapeutic approach founded by Sigmund Freud that aims to explore the unconscious mind to understand and treat psychological disorders, emphasizing early childhood experiences and the role of the unconscious.

Group Therapy

A form of psychotherapy where one or more therapists treat a small group of clients together, exploring shared issues and dynamics.

Operant Behavior

A method of learning that employs rewards and punishments for behavior, emphasizing the effects of external stimuli on behavior.

Respondent Behavior

Behavior that occurs as an automatic response to a certain stimulus.