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hodyreva [135]
2 years ago
5

During a period of economic expansion, when expected profitability is high, the: select one: a. Equilibrium price of bonds incre

ases. B. Equilibrium interest rate falls
Business
1 answer:
spin [16.1K]2 years ago
4 0

During a period of economic expansion, the demand curve for bonds shifts to the left.

<h3>What is the effect of an economic expansion?</h3>

During an economic expansion, the supply of money in the economy rises and the demand for money also increases. This leads to an increase in the interest rate and the price of the bonds would fall.

If expected profitability is expected to be high, people would prefer to hold more risky investment. Thus, there would be a fall in the demand for bonds. The demand curve for bonds would shift to the left.

Here are the options to this question:

A) the demand curve for bonds shifts to the left.

B) the supply curve of bonds shifts to the right.

C) the equilibrium interest rate falls.

D) the equilibrium price of bonds rises.

To learn more about economic expansion, please check: brainly.com/question/831569

#SPJ12

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Why is the relational approach to leadership useful for leading sustainability in an organisation? Please indicate 3 reasons.
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The understanding including its context has been explained throughout the explanation segment elsewhere here.

Explanation:

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What is purpose of public relations?
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Intermediaries are defined as Multiple Choice companies responsible for developing products to sell to businesses. organizations
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organizations that are in the middle of a series of organizations that distribute goods from producers to consumers.

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Intermediaries can be described as middlemen. They enhance the flow of goods and services between the producer and the consumer.

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