The Theory of Portfolio Choice Indicates That Higher Interest Rates

question 7

Multiple Choice

The theory of portfolio choice indicates that higher interest rates make money ________ desirable,and the demand for real money balances ________.

• A)less;falls
• B)more;falls
• C)less;rises
• D)more;rises

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Definitions:

Human Beings

Homo sapiens, the species of bipedal primates to which all modern human beings belong, characterized by a highly developed brain capable of abstract reasoning, language, and introspection.

Sensorineural Deafness

A type of hearing loss resulting from damage to the inner ear or to the nerve pathways from the inner ear to the brain.

Hair Cells

Sensory receptors located in the inner ear that are crucial for hearing and maintaining balance.

Clairvoyance

The claimed ability to gain information about an object, person, location, or physical event through means other than the known human senses.