Which Example Is a LIKELY Response to Inflation

question 291

Multiple Choice

Which example is a LIKELY response to inflation?

• A) People choose to carry higher money balances.
• B) People tend to make fewer transactions.
• C) People tend to make more transactions.
• D) People tend to hold on to fewer interest-bearing assets.

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Definitions:

Stranger Wariness

Stranger wariness is the caution or distress that babies or young children exhibit when approached or picked up by someone unfamiliar.

Self-soothe

The ability of an individual to calm oneself down and regulate one's own emotions without relying on external assistance.

Long-term Adjustment

A psychological process wherein individuals adapt to chronic situations, stressors, or changes in their life over an extended period.

Rothbart's Temperament Model

A framework for understanding individual differences in temperament, focusing on emotionality, activity, and attentional control.