An Increase in Either the Risk-Free Rate or the General

question 50

True/False

An increase in either the risk-free rate or the general level of the risk premium on bonds results in a higher required rate of return and therefore causes bond prices to increase. ​

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconscious

The part of the mind that contains thoughts, memories, and desires beyond conscious awareness, influencing feelings and behavior.

Humanistic Therapy

A form of psychotherapy that focuses on the client’s subjective, conscious experience in the “here and now”.

Behavior Therapy

A therapeutic approach focusing on changing dysfunctional behaviors through reinforcement and other conditioning techniques.