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.

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Definitions:

Safe Manner

A method or procedure that is carried out with the highest regard for the safety and well-being of individuals involved.

Immobilization

The act of restricting movement, often by using splints or casts, to allow for the healing of bones, injuries, or diseases.

Extremities

The limbs of the human body, particularly the arms and legs, including their related structures such as hands and feet.

Environmental Modifications

Changes made to the physical surroundings to improve safety or accommodate specific needs.