Question : 11) Everything else held constant, if the expected return U.S. : 1373661

 

11) 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

 

12) An increase in the expected rate of inflation will ________ the expected return on bonds relative to the that on ________ assets, everything else held constant.

A) reduce; financial

B) reduce; real

C) raise; financial

D) raise; real

 

13) If fluctuations in interest rates become smaller, then, other things equal, the demand for stocks ________ and the demand for long-term bonds ________.

A) increases; increases

B) increases; decreases

C) decreases; decreases

D) decreases; increases

 

14) If the price of gold becomes less volatile, then, other things equal, the demand for stocks will ________ and the demand for antiques will ________.

A) increase; increase

B) increase; decrease

C) decrease; decrease

D) decrease; increase

 

15) If brokerage commissions on bond sales decrease, then, other things equal, the demand for bonds will ________ and the demand for real estate will ________.

A) increase; increase

B) increase; decrease

C) decrease; decrease

D) decrease; increase

16) If gold becomes acceptable as a medium of exchange, the demand for gold will ________ and the demand for bonds will ________, everything else held constant.

A) decrease; decrease

B) decrease; increase

C) increase; increase

D) increase; decrease

 

17) The demand for Picasso paintings rises (holding everything else equal) when

A) stocks become easier to sell.

B) people expect a boom in real estate prices.

C) Treasury securities become riskier.

D) people expect gold prices to rise.

 

18) The demand for silver decreases, other things equal, when

A) the gold market is expected to boom.

B) the market for silver becomes more liquid.

C) wealth grows rapidly.

D) interest rates are expected to rise.

 

19) You would be less willing to purchase U.S. Treasury bonds, other things equal, if

A) you inherit $1 million from your Uncle Harry.

B) you expect interest rates to fall.

C) gold becomes more liquid.

D) stock prices are expected to fall.

 

20) You would be more willing to buy AT&T bonds (holding everything else constant) if

A) the brokerage commissions on bond sales become cheaper.

B) interest rates are expected to rise.

C) your wealth has decreased.

D) you expect diamonds to appreciate in value.

 

 

21) The demand for gold increases, other things equal, when

A) the market for silver becomes more liquid.

B) interest rates are expected to rise.

C) interest rates are expected to fall.

D) real estate prices are expected to increase.

22) Holding everything else constant,

A) if asset A’s risk rises relative to that of alternative assets, the demand will increase for asset A.

B) the more liquid is asset A, relative to alternative assets, the greater will be the demand for asset A.

C) the lower the expected return to asset A relative to alternative assets, the greater will be the demand for asset A.

D) if wealth increases, demand for asset A increases and demand for alternative assets decreases.

 

23) Holding all other factors constant, the quantity demanded of an asset is

A) positively related to wealth.

B) negatively related to its expected return relative to alternative assets.

C) positively related to the risk of its returns relative to alternative assets.

D) negatively related to its liquidity relative to alternative assets.

 

24) Everything else held constant, would an increase in volatility of stock prices have any impact on the demand for rare coins?  Why or why not?

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more