Which of the Following Statements Is True If Interest Rates

question 122

Multiple Choice

Which of the following statements is true if interest rates were zero?

• A) The demand for bonds increases because bonds will be a more attractive alternative to money.
• B) People will hold their wealth in the form of money rather than in bonds.
• C) Bonds and money will become perfect substitutes since both are non-interest earning assets.
• D) The supply of bonds will increase.

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Definitions:

Autonomous Morality

A stage of moral development where individuals start to understand that moral principles may vary based on context and are not just based on external authority figures or rules.

Moral Development

refers to the process through which individuals develop an understanding of values, ethics, and morality, progressing through various stages of moral reasoning throughout their life.

Immanent Justice

Immanent Justice is a cognitive bias, particularly in children, where it is believed that moral behavior is always rewarded and immoral behavior is always punished, naturally or supernaturally.

Moral Development

The growth of an individual's understanding of the principles of right and wrong and the application of this understanding to behavior.