Table 14-1 -Refer to Table 14-1. If the Market Interest Rate Declines

question 40

Multiple Choice

Table 14-1

-Refer to Table 14-1. If the market interest rate declines from 15% to 13%, what happens to the quantity of investment demanded?

• A) It decreases by $2,200 because investment is now less profitable.
• B) It decreases by $1,000 because investment is now less profitable.
• C) It increases by $200 because investment is now more profitable.
• D) It increases by $2,200 because investment is now more profitable.

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Definitions:

Overactive Id Impulses

An excessive dominance of the id's basic instincts and drives, particularly those related to pleasure and immediate gratification, in one's psyche.

Humanistic Theorist

A psychologist or scholar who emphasizes individual potential, self-actualization, and the importance of personal growth and experience.

Cognitive-Behavioral Theorist

A psychologist specializing in a therapy that explores the interconnection between thoughts, feelings, and behaviors to address and modify dysfunctional patterns.

Client-Centered Therapy

The humanistic therapy developed by Carl Rogers in which clinicians try to help clients by being accepting, empathizing accurately, and conveying genuineness.