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

---

Definitions:

Depth Cue

Visual or auditory indicators that provide information about the distance and three-dimensionality of objects in the environment.

Binocular Disparity

The difference in the images received by the two eyes due to their slightly different perspectives, important for depth perception.

Retina

A light-sensitive layer of tissue at the back of the eye that converts light into neural signals sent to the brain.

Good Continuation

A principle in gestalt psychology that states elements tend to be grouped together if they follow in the same direction or form a continuous pattern.