Keynes Argued That When Interest Rates Were Low Relative to Some

question 82

Multiple Choice

Keynes argued that when interest rates were low relative to some normal value,people would expect bond prices to ________ so the quantity of money demanded would ________.

• A)increase;increase
• B)increase;decrease
• C)decrease;increase
• D)decrease;decrease

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Definitions:

Tub Bath

A method of bathing where the individual sits or lies in a large container filled with water to cleanse the body.

Constricts Blood Vessels

The process by which blood vessels narrow, reducing blood flow; often a physiological response to cold temperatures or certain hormonal stimuli.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, an important measure of heart efficiency and health.

Sensory Input

Information received by the sensory organs, such as sight, sound, touch, taste, and smell, which is then processed by the brain.