Other Things Constant,if the Interest Rate Rises,people Prefer to Hold

question 36

Multiple Choice

Other things constant,if the interest rate rises,people prefer to hold:

• A)less money because the opportunity cost of holding money has increased.
• B)more money because the opportunity cost of holding money has increased.
• C)less money because the opportunity cost of holding money has declined.
• D)more money because the opportunity cost of holding money has declined.
• E)the same amount of money because the opportunity cost of holding money is zero.

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Definitions:

Locus of Control

A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Interpersonal Trust

The belief in the reliability, truth, or ability of others, forming the foundation of most human relationships and interactions.

Situation Determining

A concept that suggests the influence of external environments and circumstances in shaping behavior and decision-making.