Examlex
If the possibility of a default increases because corporations begin to suffer losses,then the default risk on corporate bonds will ________,and the bonds' returns will become ________ uncertain,meaning that the expected return on these bonds will decrease,everything else held constant.
Consumption
The use of goods and services by households or individuals for personal needs or enjoyment, as opposed to investment or production purposes.
Supply of Savings
The total amount of savings that individuals and institutions are willing to lend or invest, available in the economy.
Interest Rates
The fee that lenders impose on borrowers for utilizing funds, represented as a percentage of the principal sum.
Investment
The process of distributing funds with the aim of earning an income or profit.
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