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A sharp increase in interest rates will decrease the price of bonds and increase the interest income available to new bondholders. This will increase the demand for bonds compared to the demand for stocks,
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A sharp increase in interest rates will decrease the price of bonds and increase the interest income available to new bondholders. This will increase the demand for bonds compared to the demand for stocks, all other considerations remaining constant.

A. True
B. False

User Dmitry Belaventsev
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1 Answer

5 votes
The answer is true it is a
User Partho Biswas
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