Use the Following Figure to Answer the Questions

question 10

Multiple Choice

Use the following figure to answer the questions :

-In the figure above,the price of bonds would fall from P₁ to P₂

• A)inflation is expected to increase in the future.
• B)interest rates are expected to fall in the future.
• C)the expected return on bonds relative to other assets is expected to increase in the future.
• D)the riskiness of bonds falls relative to other assets.

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Definitions:

Mourning Wars

Traditional wars waged by Eastern Woodlands Native American groups to avenge the death of a loved one by seeking captives from other tribes.

Caravel

A type of small, highly maneuverable sailing ship developed by the Portuguese in the late 15th century, instrumental in exploration and trade.

Feitoria

historical term for Portuguese trade posts or fortresses established from the 15th century onwards across Africa, Asia, and Brazil for trade and to spread Christianity.

Irrigation Systems

Engineered networks of pumps, canals, barriers, and ditches designed to transport water to agricultural fields to support crop growth in areas lacking sufficient rainfall.