Which of the Following Statements Is CORRECT

question 15

Multiple Choice

Which of the following statements is CORRECT?

• A) If expected inflation increases, interest rates are likely to increase.
• B) If individuals in general increase the percentage of their income that they save, interest rates are likely to increase.
• C) If companies have fewer good investment opportunities, interest rates are likely to increase.
• D) Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy, hence the riskiness of all debt securities.
• E) Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.

---

Definitions:

Visual And Emotional Information

The processing and interpretation of visual stimuli that evoke emotions in an individual.

Autism Spectrum Disorder

A developmental disorder that affects communication and behavior, ranging in severity across individuals.

Mirroring Activity

The process by which individuals subconsciously imitate the gestures, speech patterns, or attitudes of others, often to create or maintain social bonds.

Fear Of Strangers

The common fear and apprehension that infants and toddlers show towards individuals they do not recognize, often manifesting around the age of six to twelve months.