If Fluctuations in Interest Rates Become Smaller,then,other Things Equal,the Demand

question 14

Multiple Choice

If fluctuations in interest rates become smaller,then,other things equal,the demand for stocks ________ and the demand for long-term bonds ________.

• A)increases;increases
• B)increases;decreases
• C)decreases;decreases
• D)decreases;increases

---

Definitions:

Rent-Seeking Activity

Economic activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulation or exploitation of resources.

Food-Stamp Program

A U.S. federal aid program, now known as the Supplemental Nutrition Assistance Program (SNAP), that provides food-purchasing assistance for low- and no-income people.

Farm Subsidies

Government payments provided to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such goods.

Political Logrolling

A practice in politics where two or more parties exchange support for each other's benefit, often seen in legislative voting.