Suppose an Economic Analyst Suggests That Investors Should Now Hold

question 93

Multiple Choice

Suppose an economic analyst suggests that investors should now hold cash instead of stocks or bonds. The analyst is probably encouraging an increase in money balances for which reason?

• A)transaction demand
• B)portfolio demand
• C)precautionary demand
• D)present value demand
• E)speculative demand

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Definitions:

Adapt Environment

The process by which individuals or groups adjust to changes in their surrounding environmental conditions to improve compatibility and comfort.

Create Culture

The process of cultivating shared values, beliefs, norms, and practices that define a group or organization.

Define Culture

The shared knowledge, behaviors, social norms, art, beliefs, and customs of a group of people.

Postmodernism

An intellectual stance or mode of discourse defined by an attitude of skepticism toward what it describes as the grand narratives and ideologies of modernism, emphasizing pluralism, relativism, and diversity.