The Relationship in the Above Figure Suggests That When the Interest

question 127

Multiple Choice

The relationship in the above figure suggests that when the interest rate is 5 percent,

• A) an increase in income will be associated with a decrease in expenditures.
• B) a decrease in income will be associated with a decrease in expenditures.
• C) a decrease in income will be associated with an increase in expenditures.
• D) there is no relationship between expenditures and income.

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Definitions:

Avolition

Refers to a decrease in the motivation to initiate and perform self-directed purposeful activities.

Auditory

Pertaining to the sense or organs of hearing, or to the process of perceiving sound.

Visual

Pertaining to the sense of sight or the perception of objects through light signals received and processed by the eyes.

Olfactory

Pertains to the sense of smell.