Increases in the Basic Cost of Long-Term Funds or in Risk

question 37

True/False

Increases in the basic cost of long-term funds or in risk will raise the required return on a bond.

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Definitions:

Variable Inputs

Inputs or resources whose usage level can be changed in the short term to match the level of production output.

Property Resources

Physical and intangible entities that generate economic value owned by individuals or companies.

Labor

The human effort, including both physical and mental work, used in the production of goods and services.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or business activity.