If There Is Excess Money Demand, What Will People Do

question 74

Multiple Choice

If there is excess money demand, what will people do and what happens to the interest rate?

• A) People will deposit more into interest-bearing accounts, and the interest rate will fall.
• B) People will deposit more into interest-bearing accounts, and the interest rate will rise.
• C) People will withdraw money from interest-bearing accounts, and the interest rate will fall.
• D) People will withdraw money from interest-bearing accounts, and the interest rate will rise.

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Definitions:

Animal Research

The use of non-human animals in scientific experiments to study biological, psychological, or social processes.

Behaviourism

A theory in psychology that asserts that behaviors are a result of the environment and stimuli, emphasizing observable and measurable behaviors over internal mental states.

Behaviourism

A psychological approach that emphasizes the study of observable behaviors and the environment's effect on behavior, minimizing the importance of mental states.

Skinner

B.F. Skinner, a pioneering figure in psychology who developed the theory of operant conditioning, emphasizing how behavior is influenced by its consequences.