[Solved] Everything Else Held Constant,a Decrease in Wealth

Q1: Pieces of property that serve as a store of value are called A)assets. B)units of account. C)liabilities. D)borrowings.

Q2: Of the four factors that influence asset demand,which factor will cause the demand for all assets to increase when it increases,everything else held constant? A)wealth B)expected returns C)risk D)liquidity

Q3: If wealth increases,the demand for stocks ________ and that of long-term bonds ________,everything else held constant. A)increases;increases B)increases;decreases C)decreases;decreases D)decreases;increases

Q5: An increase in an asset's expected return relative to that of an alternative asset,holding everything else constant,________ the quantity demanded of the asset. A)increases B)decreases C)has no effect on D)erases

Q6: Everything else held constant,if the expected return on Disney stock rises from 5 to 10 percent and the expected return on CBS stock is unchanged,then the expected return of holding CBS stock ________ relative to Disney stock and the demand for CBS stock ________. A)rises;rises B)rises;falls C)falls;rises D)falls;falls

Q7: Everything else held constant,if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent,then the expected return of holding GE stock ________ relative to U.S. Treasury bonds and the demand for GE stock ________. A)rises;rises B)rises;falls C)falls;rises D)falls;falls

Q8: If housing prices are expected to increase,then,other things equal,the demand for houses will ________ and that of Treasury bills will ________. A)increase;increase B)increase;decrease C)decrease;decrease D)decrease;increase

Q9: If stock prices are expected to drop dramatically,then,other things equal,the demand for stocks will ________ and that of Treasury bills will ________. A)increase;increase B)increase;decrease C)decrease;decrease D)decrease;increase

Q10: Everything else held constant,if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent,then the expected return of holding RST stock ________ relative to XYZ stock and demand for XYZ stock ________. A)rises;rises B)rises;falls C)falls;rises D)falls;falls

Q11: Everything else held constant,if the expected return on U.S. Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent,then the expected return of corporate bonds ________ relative to U.S. Treasury bonds and the demand for corporate bonds ________. A)rises;rises B)rises;falls C)falls;rises D)falls;falls