Keynes Argued That When Interest Rates Were High Relative to Some

question 91

Multiple Choice

Keynes argued that when interest rates were high 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;decrease
• D)decrease;increase

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Definitions:

Hypomania

A milder form of mania, characterized by elevated or irritable mood, increased activity or energy levels, but not severe enough to cause significant impairment.

Depression

A common mental disorder characterized by persistent sadness, loss of interest, and a lack of energy or drive, often accompanied by physical symptoms.

Rapid Cycling

A term in bipolar disorder characterized by four or more episodes of mania, hypomania, or depression within a year.

Melancholic

Characterized by a profound presentation of depression, often with significant changes in appetite, sleep, and energy levels, and marked by feelings of sorrow, hopelessness, or inadequacy.