If Private Sector Investment Does Not Respond Much to Interest

question 155

Multiple Choice

If private sector investment does not respond much to interest rate changes, then

• A) there will be more crowding out when expansionary policies are undertaken.
• B) there will be less crowding out when expansionary policies are undertaken.
• C) fiscal policy will be less effective than monetary policy.
• D) monetary policy will be more effective than fiscal policy.

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Definitions:

Common Factors

Elements that are typically found in successful outcomes across different therapies, suggesting they contribute to change regardless of specific treatment modalities.

Ashton and Lee

Psychologists Michael Ashton and Kibeom Lee, known for their work in personality traits, including the HEXACO model of personality structure.

Neuroticism

A characteristic of personality defined by feelings of anxiety, sadness, concern, envy, frustration, jealousy, and isolation.

Emotionality

Refers to the intensity and range of emotional responses observed in an individual.