In Keynes's Liquidity Preference Framework,as the Expected Return on Bonds

question 99

Multiple Choice

In Keynes's liquidity preference framework,as the expected return on bonds increases (holding everything else unchanged) ,the expected return on money ________,causing the demand for ________ to fall.

• A)falls;bonds
• B)falls;money
• C)rises;bonds
• D)rises;money

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Definitions:

Phonetic Method

An approach to teaching reading and writing that emphasizes the learning of sounds and the letters that represent them, often used in early childhood education.

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The act or profession of imparting knowledge, skills, or values to others.

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The process by which individuals acquire, understand, and utilize knowledge through thought, experience, and the senses.

Transitivity

In mathematics and logic, the property of a relation where if it applies between successive pairs like a is to b and b is to c, it also applies directly between a and c.