Question: Please explain why #17 is B 5 percent ) 10percent percent el D) 25 percent 5 17) An equal decrease in all bond interest rates
5 percent ) 10percent percent el D) 25 percent 5 17) An equal decrease in all bond interest rates A) increases the price of a five-year bond more than the price of a ten-year bond. B-increases the price of a ten-year bond more than the price of a five-year bond dcreases the price of a five-year bond more than the price of a ten-year bond. decreases the price of a ten-year bond more than the price of a five-year bond. The nominal interest rate minus the expected rate of inflation efines the real interest rate. B) is a less accura C) is te measure of the incentives to borrow and lend than is the nominal interest rate a less accurate indicator of the tightness of credit market conditions than is the nominal interest D) defines the discount rate. 19) When the 1) nominal; lend; borrow interest rate is low, there are greater incentives to and fewer in
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