10. What does expected future inflation do to the market for bonds? (A) Supply increases; prices decline and yields rise. (B) Demand increases: prices rise and yields decline. (C) Supply decreases: prices rise and yields decline. (D) Demand decreases: prices decline and yields rise.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 22RQ: Why should a financial investor care about diversification?
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Need help with multiple choice macroeconomic question

10. What does expected future inflation do to the market for bonds?
(A) Supply increases; prices decline and yields rise.
(B) Demand increases: prices rise and yields decline.
(C) Supply decreases: prices rise and yields decline.
(D) Demand decreases: prices decline and yields rise.
11. Which of the following statements is TRUE?
(A) ETFS consist of funds that invest only in stocks.
(B) Commercial real estate performs well during economic downturns.
(C) Bitcoin is most secure when held on a coin exchange.
(D) ETFS generally outperform mutual funds and have lower fees.
Transcribed Image Text:10. What does expected future inflation do to the market for bonds? (A) Supply increases; prices decline and yields rise. (B) Demand increases: prices rise and yields decline. (C) Supply decreases: prices rise and yields decline. (D) Demand decreases: prices decline and yields rise. 11. Which of the following statements is TRUE? (A) ETFS consist of funds that invest only in stocks. (B) Commercial real estate performs well during economic downturns. (C) Bitcoin is most secure when held on a coin exchange. (D) ETFS generally outperform mutual funds and have lower fees.
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