If Firms Decide to Decrease Their Purchases of U

question 120

Multiple Choice

If firms decide to decrease their purchases of U.S.-produced goods,

• A)the decrease in investment will have no effect on U.S.income or consumption.
• B)the decrease in investment will cause U.S.income to increase, which will cause consumption to increase.
• C)the decrease in investment will cause U.S.income to decrease, which will cause consumption to decrease.
• D)real GDP will increase by the same amount that investment spending decreased.
• E)real GDP will decrease by the same amount that investment spending decreased.

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Definitions:

Fear of Failure

The apprehension or dread of not succeeding in a task or goal, which can inhibit risk-taking and decision-making.

Positive Expectancy

The belief that one's efforts will result in positive outcomes, influencing motivation and persistence in tasks.

High Need

A condition in which there is a significant demand or requirement for a particular resource, service, or condition.

Positive Instrumentality

the belief that performing well will lead to the attainment of desired outcomes or rewards.