Which of the Following Statements Is CORRECT,other Things Held Constant

question 27

Multiple Choice

Which of the following statements is CORRECT,other things held constant?

• A) If companies have fewer good investment opportunities,interest rates are likely to increase.
• B) If individuals increase their savings rate,interest rates are likely to increase.
• C) If expected inflation increases,interest rates are likely to increase.
• D) Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy,hence the riskiness of all debt securities.
• E) Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.

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Definitions:

Category Killers

Specialty discount stores that are able to gain high market share within their chosen category.

Market Share

The portion of a market controlled by a particular company, product, or brand, often expressed as a percentage of total sales.

Leased Department

A section within a retail store that is rented to an outside party.

Omni-Channel Retailing

A multi-channel approach to sales that seeks to provide customers with a seamless shopping experience whether they're shopping online from a mobile device, a laptop, or in a brick-and-mortar store.