An Increase in the Interest Rate Would Induce People to

question 76

Multiple Choice

An increase in the interest rate would induce people to

• A)buy shares of stock and buy bonds,but would have no effect on their desire to hold money.
• B)get rid of all their money and buy stocks with it.
• C)sell their least liquid assets and hold more money in case interest rates go up again.
• D)hold a smaller fraction of their wealth in the form of money.

---

Definitions:

Common Carriers

Businesses or agencies that offer to transport goods or people for anyone willing to pay, under the regulation of laws that impose special obligations and liabilities.

Publishing House

A company that publishes books, magazines, and/or digital content, managing the process from manuscript to distribution.

Illustrate

To explain or make something clear by using examples, charts, pictures, etc.

Creative View

involves adopting an innovative or unconventional perspective in problem-solving or artistic expression.