Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please do it correctly will upvote Question 1 If corporations become more optimistic about future profits and decide to borrow more money for their investment
please do it correctly will upvote
Question 1 If corporations become more optimistic about future profits and decide to borrow more money for their investment projects, Demand for bonds will increase, price of bonds will increase, and interest rate will decrease. Demand for bonds will increase, price of bonds will increase, and interest rate will increase. O Demand for bonds will increase, price of bonds will decrease, and interest rate will decrease. O Demand for bonds will increase, price of bonds will decrease, and interest rate will increase. O Supply of bonds will increase, price of bonds will increase, and interest rate will decrease. Supply of bonds will increase, price of bonds will increase, and interest rate will increase. O Supply of bonds will increase, price of bonds will decrease, and interest rate will decrease. O Supply of bonds will increase, price of bonds will decrease, and interest rate will increase. Question 2 If the volatility of inflation rate increases, 1 pts Demand for bonds will decrease, supply of bonds will decrease, and the interest rate will remain the same. Demand for bonds will decrease, supply of bonds will decrease, and the interest rate will increase. O Demand for bonds will decrease, supply of bonds will decrease, and the interest rate will decrease. O Demand for bonds will decrease, supply of bonds will decrease, and the interest rate may increase or decrease.. O Demand for bonds will increase, supply of bonds will increase, and the interest rate will decrease. 1 pts O Demand for bonds will increase, supply of bonds will increase, and the interest rate will remain the same. O Demand for bonds will increase, supply of bonds will increase, and the interest rate will increase. O Demand for bonds will increase, supply of bonds will increase, and the interest rate may increase or decreaseStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started