How Did Long-Term U.S.Treasury Bonds Perform in 2008

question 59

Multiple Choice

How did long-term U.S.Treasury bonds perform in 2008?

• A)Decreased by more than 15 percent
• B)Decreased between 5 and 15 percent
• C)Changed between -5 and +5 percent
• D)Increased between 5 and 15 percent
• E)Increased more than 15 percent

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Definitions:

Real Balances Effect

The impact on consumer purchasing power resulting from a change in the price level, affecting real income and consumption.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, often used as a measure of inflation.

Consumption

The act of using goods and services for personal needs or desires, a basic economic activity measured to assess the health and growth of an economy.

Keynesian Economics

An economic theory stating that government intervention can stabilize the economy through fiscal and monetary policy.