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.

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Definitions:

Health Psychologist

A specialist who studies how biological, psychological, and social factors affect health and illness, aiming to improve patients' physical and mental health.

Neurochemical Imbalance

A disturbance in the levels of neurotransmitters in the brain, which can affect mood and behavior.

Heritability

The proportion of variance in individuals' traits which can be attributed to genetic differences.

Antipsychotic Medication

Drugs used to treat symptoms of psychosis, such as delusions and hallucinations, in conditions like schizophrenia.