You Go to the Wall Street Journal and Notice That

question 50

Multiple Choice

You go to the Wall Street Journal and notice that yields on almost all corporate and Treasury bonds have decreased. The yield decreases may be explained by which one of the following:

• A) a decrease in U.S. inflationary expectations
• B) newly expected decline in the value of the dollar
• C) an increase in current and expected future returns of real corporate investments
• D) decreased Japanese purchases of U.S. Treasury Bills/Bonds
• E) increases in the U.S. government budget deficit

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Definitions:

Indirect Actions

Measures or activities that are not directly implemented but influence outcomes through intermediaries or other indirect means.

Currency Exchange

The act of converting one country's currency into another's, a key component in international trade and investment activities.

Domestic Currency

The currency that is legally in use within a country's borders, serving as the medium for exchange, a store of value, and a standard of account.

Exchange Rate

The value of one currency when being converted to another currency.