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QUESTION
Suppose Jacques would like to invest $9,000 of his savings. One way of investing is to purchase stock or bonds from a private company.
Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Jacques's shares to decline.
Show more Assuming that everything else is equal, a bond issued by the government of Japan most likely pays a (lower/higher)interest rate than a bond issued by a government that is engaged in a civil war.
