Solved

Everything Else Held Constant,if the Expected Return on U

Question 74

Multiple Choice

Everything else held constant,if the expected return on U.S. Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent,then the expected return of corporate bonds ________ relative to U.S. Treasury bonds and the demand for corporate bonds ________.


A) rises;rises
B) rises;falls
C) falls;rises
D) falls;falls

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions