The Following Figures Show the Demand (D) and Supply (S)

question 52

Multiple Choice

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-All of the following will shift the demand curve for capital, except:

• A)future expectations about the demand for the good produced by a firm.
• B)technological changes.
• C)the price of capital.
• D)the entry of new firms into the market.
• E)the change in the interest rate.

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Definitions:

Coupon

A coupon refers to the annual interest rate paid on a bond, expressed as a percentage of the face value.

Yield to Maturity

The total return anticipated on a bond if it is held until it matures, considering all payments of interest and principal.

Semiannually

Taking place semiannually, usually once every six months.

Liquidity Risk

The risk that an entity may be unable to convert its assets to cash quickly without significant loss in value, impacting its ability to meet its short-term obligations.