If the Relationship Between Consumer and Business Spending and Investment

question 61

Multiple Choice

If the relationship between consumer and business spending and investment decisions and the interest rate is stable,

• A)the demand for money and nonmoney assets must be unstable.
• B)money supply targets are preferred.
• C)interest rate targets are preferred.
• D)the real side of the economy must be unstable.

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Definitions:

Icon

A symbol or graphic representation on a screen; or a person or thing regarded as a representative symbol or as worthy of veneration.

Echo

A reflected sound wave that is heard again by the emitter or another listener because the sound waves bounce off objects.

Sensory Registers

The initial processing systems in the brain that hold incoming information from the senses for a very brief period of time.

STM

Stands for Short-Term Memory, which is the capacity for holding a small amount of information in an active, readily available state for a short period of time.