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-In the Figure Above, the Price of Bonds Would Fall

Question 27

Multiple Choice

-In the figure above, the price of bonds would fall from P<sub>1</sub> to P<sub>2</sub> if ________. A) inflation is expected to increase in the future B) interest rates are expected to fall in the future C) the expected return on bonds relative to other assets is expected to increase in the future D) the riskiness of bonds falls relative to other assets
-In the figure above, the price of bonds would fall from P1 to P2 if ________.


A) inflation is expected to increase in the future
B) interest rates are expected to fall in the future
C) the expected return on bonds relative to other assets is expected to increase in the future
D) the riskiness of bonds falls relative to other assets

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