If the Expected Gains on Stocks Rise, While the Expected

question 69

Multiple Choice

If the expected gains on stocks rise, while the expected returns on bonds do not change, then

• A)the demand curve for bonds will shift to the left.
• B)the supply curve for loanable funds will shift to the right.
• C)the demand curve for loanable funds will shift to the left.
• D)the equilibrium interest rate will fall.

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Definitions:

Unionization

The process by which workers form or become members of a labor union to collectively bargain for better wages, working conditions, and benefits.

Public Sector

The part of the economy that is controlled by the government, encompassing public services and enterprises.

Collective Bargaining Agreement

A written contract negotiated through collective bargaining by employees, through their representatives, and their employer, dictating the terms of employment.

Competitive Labor Market

A labor market characterized by numerous employers and job seekers, where wages are determined by supply and demand for labor.