Explain how you reached the answer or show your work if a mathematical calculati

Question

Explain how you reached the answer or show your work if a mathematical calculation is needed, or both.
2. Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?
a. Households start saving a larger percentage of their income.
b. The economy moves from a boom to a recession.
c. The level of inflation begins to decline.
d. Corporations step up their expansion plans and thus increase their demand for capital.
e. The Federal Reserve uses monetary policy in an attempt to stimulate the economy.

Explanation / Answer

d. Corporations step up their expansion plans and thus increase their demand for capital.

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