If Market Interest Rates Decline

question 92

Multiple Choice

If market interest rates decline,

• A) short-term bonds will decline in value more than long-term bonds.
• B) short-term bonds will rise in value more than long-term bonds.
• C) long-term bonds will decline in value more than short-term bonds.
• D) long-term bonds will rise in value more than short-term bonds.

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Definitions:

Universal Generalization

A logical inference rule stating that if something is true for all cases, then it is true in general.

Quantifier Negation

The logical operation of negating or reversing the scope of a quantifier in a statement, changing its encompassing range over the subjects it addresses.

Existential Generalization

A form of inference where from a specific case one concludes the existence of an instance satisfying a particular condition.

Existential Instantiation

A logical principle stating that if something is said to exist, then a specific instance of that thing must also exist.