In the Long Run, an Increase in the Demand for Investment

question 76

Multiple Choice

In the long run, an increase in the demand for investment pushes the real interest rate, encourages
Saving by households, and leads to a future growth rate of potential output.

• A) down; less; lower
• B) up; less; lower
• C) down; less; higher
• D) up; more; higher
• E) up; more; lower

---

Definitions:

Trigger Costs

Expenses incurred as a result of initiating specific actions or projects, often used in decision-making to assess the financial impact of those actions.

Activity Performed

A term that broadly refers to any actions or tasks completed during a process or project.

Activity-based Performance Measures

Metrics that evaluate the efficiency and effectiveness of specific actions or processes within an organization.

Feedback

Feedback is information provided about the result of an action or process, which can be used for further improvement and adjustment.