Holding the Expected Return on Bonds Constant,an Increase in the Expected

question 148

Multiple Choice

Holding the expected return on bonds constant,an increase in the expected return on common stocks would ________ the demand for bonds,shifting the demand curve to the ________.

• A)decrease;left
• B)decrease;right
• C)increase;left
• D)increase;right

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Definitions:

Firms

Business entities engaged in commercial, industrial, or professional activities, either for profit or as a nonprofit.

Perfectly Competitive

a market structure characterized by a large number of small firms, a homogeneous product, perfect information, and no barriers to entry or exit.

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell their invention for a specific period of time.

New Drugs

Refers to medications or therapies that have recently been developed and introduced to the market, typically after undergoing rigorous testing and approval processes.