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Classify each of the following in terms of its effect on interest rates (increase or decrease): I. Perceived risk of financial securities increases. II. Near term spending needs decrease. III. Future profitability of real investments increases. Multiple Choice I increases: II increases: III increases

Classify each of the following in terms of its effect on interest rates (increase or decrease): I. Perceived risk of financial securities increases. II. Near term spending needs decrease. III. Future profitability of real investments increases. Multiple Choice I increases: II increases: III increases

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Classify each of the following in terms of its effect on interest rates (increase or decrease): 1. Perceived risk of financial securities increases. II. Near term spending needs decrease. III. Future profitability of real investments increases. Multiple Choice I increases: Il increases: III increases None of these choices are correct. I decreases; Il decreases; III decreases I increases: Il decreases: Ill decreases I decreases: Il increases: Ill increases
Transcribed Image Text:Classify each of the following in terms of its effect on interest rates (increase or decrease): 1. Perceived risk of financial securities increases. II. Near term spending needs decrease. III. Future profitability of real investments increases. Multiple Choice I increases: Il increases: III increases None of these choices are correct. I decreases; Il decreases; III decreases I increases: Il decreases: Ill decreases I decreases: Il increases: Ill increases
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