Suppose That at a Given Interest Rate and Money Supply,all

question 83

Multiple Choice

Suppose that at a given interest rate and money supply,all firms and households simultaneously try to add to their money balances.They do this by trying to ________,which causes an excess ________,which causes a(n) ________,and finally a(n) ________ in the interest rate.

• A)sell bonds; supply of bonds; increase in the price of bonds; decrease
• B)buy bonds; supply of bonds; decrease in the price of bonds; increase
• C)sell bonds; demand for bonds; increase in the price of bonds; decrease
• D)buy bonds; demand for bonds; increase in the price of bonds; decrease
• E)sell bonds; supply of bonds; decrease in the price of bonds; increase

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Definitions:

False Consensus Effect

The tendency to overestimate the extent to which others share our beliefs, attitudes, and behaviors.

Unconscious Mental Dynamics

Refers to the processes and interactions of mental elements within the mind that occur without conscious awareness, influencing thoughts, feelings, and behaviors.

Repressive Censoring

The act of suppressing unwelcome thoughts, feelings, or memories from consciousness, as a defense mechanism.

Parent-child Interaction

The dynamic and reciprocal communication and actions between a parent and child, which are crucial for the child's social, emotional, and cognitive development.