If Wealth Increases,the Demand for Stocks ________ and That of Long-Term

question 6

Multiple Choice

If wealth increases,the demand for stocks ________ and that of long-term bonds ________,everything else held constant.

• A)increases;increases
• B)increases;decreases
• C)decreases;decreases
• D)decreases;increases

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Definitions:

Sophisticated

Having a refined knowledge of the world, complex or developed in a way that is not immediately obvious.

Centrated Thinking

A cognitive phenomenon in early childhood, where a child focuses on one aspect of a situation while neglecting others, indicative of preoperational thinking according to Jean Piaget.

Reverse Thinking

An approach to problem-solving where one starts with the desired outcome and works backward to identify the steps necessary to achieve that outcome.

Conservation

Conservation is a concept in cognitive development, demonstrating that a child understands that quantities remain consistent despite changes in shape or arrangement, typically developed during the concrete operational stage.