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:

Sublingual

Pertaining to or applied under the tongue, a method often used for the administration of certain medications for rapid absorption.

Chest Pain

A common symptom that can result from a variety of causes ranging from non-serious to life-threatening conditions.

Ophthalmic Eye Drops

Medication in drop form, administered to the eye to treat a variety of conditions.

Conjunctival Sac

The space between the eyelids and the surface of the eye itself, where contact lenses rest and where eye drops are administered.