An increase in the tax rate on dividends, other things equal, is likely to result in a(n):
A) increased demand for bonds due to an increase in the expected return on bonds relative to stocks
B) increased supply of bonds due to an increase in the expected return on bonds relative to stocks
C) reduced demand for bonds due to a decrease in the expected return on bonds relative to stocks
D) reduced demand for bonds due to an increase in the expected return on bonds relative to stocks
A
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If the duration of unemployment in a country increases from 16 weeks to 18 weeks, then
A) the unemployment rate will decrease. B) the unemployment rate will increase. C) the size of the labor force will increase. D) the size of the labor force will decrease.
If the Fed increases the required reserve ratio at a time when banks are holding excess reserves, then: a. the Fed's aim is to increase the money supply
b. banks are likely to lend out more money than they would if the Fed left the reserve ratio alone. c. banks are likely to earn higher profits than they would. d. the money supply will not increase as much as it would if the Fed left the reserve ratio alone. e. the Fed's aim is to conduct open market operations without changing the money supply.