If Assets Are Imperfect Substitutes, Then an Increase in the Amount

question 22

Multiple Choice

If assets are imperfect substitutes, then an increase in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank.

• A) increase; leave unchanged
• B) increase; decrease
• C) increase; increase
• D) decrease; decrease
• E) leave unchanged; decrease

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Definitions:

Months of Age

A measurement of time used to specify how old someone or something is in months, often applied to infants and young children.

Piaget

Swiss psychologist Jean Piaget is known for his theory on the cognitive development of children, identifying stages of mental growth from infancy to adolescence.

Deferred Imitation

The ability to observe an action and replicate it later, even without the immediate presence of the original stimulus or model.

Echolalia

The automatic repetition of sounds or words.