In the Keynesian Model,and Expected Increase in the Interest Rate

question 27

Multiple Choice

In the Keynesian model,and expected increase in the interest rate

• A)increases the demand for bonds and the demand for money.
• B)increases the demand for bonds and the demand for stocks.
• C)decreases the demand for bonds and increases the demand for money.
• D)increases the demand for bonds and decreases the demand for money.

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Definitions:

Acceptor

A drawee of a draft who has promised to honor the draft as presented by signing it on its face.

Draft

A written order by which the party creating it orders another party to pay money to a third party. Also called bill of exchange.

Instrument

A formal legal document that serves as evidence of a fact, act, or obligation, such as a deed, will, or contract.

Insane

A term describing severe mental illness or insanity, legally signifying inability to understand or control one's actions.