A Business Cycle Expansion Increases Income,causing Money Demand to ________

question 65

Multiple Choice

A business cycle expansion increases income,causing money demand to ________ and interest rates to ________,everything else held constant.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

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Definitions:

Diathesis-Stress Model

A psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.

Biological Predisposition

An inherent genetic inclination towards developing certain traits or disorders, influenced by environmental factors.

Lifetime

The duration of existence of an individual or the period during which something is functional or exists.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior, leading to a decrease in functioning and often involving psychotic experiences like hallucinations or delusions.