Lower Expected Interest Rates in the Future ________ the Demand

question 16

Multiple Choice

Lower expected interest rates in the future ________ the demand for long-term bonds and shift the demand curve to the ________

• A) increase; left.
• B) increase; right.
• C) decrease; left.
• D) decrease; right.

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Definitions:

Comparative Advantage

The ability of an individual, company, or nation to produce a good or service at a lower opportunity cost than its competitors.

High-Opportunity Cost

Refers to the high value or benefit that is foregone from not choosing the next best alternative with available resources.

Low-Opportunity Cost

Describes a situation where choosing one option over another entails a minimal sacrifice of alternative opportunities or benefits.

International Trade

The trading of products, services, and financial assets between different countries or territories.