You go to the Wall Street Journal and notice that yields on almost all corporate and Treasury bonds have decreased. The yield decreases may be explained by which of the following?
A. an increase in U. S. inflationary expectations
B. newly expected decline in the value of the dollar
C. an increase in current and expected future returns of real corporate investments
D. decreased Japanese purchase of U. S. Treasury Bills/Bonds
E. none of the above

E) none of the above

Explanation:

A. an increase in U.S. inflationary expectations  HIGHER INFLATION WOULD INCREASE THE INTEREST RATES, NOT DECREASE THEM

B. newly expected decline in the value of the dollar  HIGHER INFLATION = LOWER VALUE OF THE DOLLAR ⇒  WOULD INCREASE THE INTEREST RATES, NOT DECREASE THEM

C. an increase in current and expected future returns of real corporate investments  WOULD INCREASE THE INTEREST RATES

D. decreased Japanese purchase of U.S. Treasury Bills/Bonds  IF THE DEMAND FOR US SECURITIES DECREASES, THEIR PRICE WILL FALL, WHICH WOULD RESULT IN AN INCREASE IN INTEREST RATES

answer; i believe that the correct answer is (d)when the products are consumed or

this business is a price setter.

hope this