Given the Expected Rate of Return on All Possible Investment

question 162

Multiple Choice

Given the expected rate of return on all possible investment opportunities in the economy:

• A)an increase in the real rate of interest will reduce the level of investment.
• B)a decrease in the real rate of interest will reduce the level of investment.
• C)a change in the real interest rate will have no impact upon the level of investment.
• D)an increase in the real interest rate will increase the level of investment.

---

Definitions:

Charismatic Leadership

A leadership style characterized by a leader's ability to inspire and motivate followers through their personality and actions.

Referent Power

A form of influence based on the leader's personal traits, where followers identify with and wish to emulate the leader.

Transactional Leadership

Involves leaders who focus on supervision, organization, and performance; leadership is based on exchanges and rewards for meeting objectives.

Implicit Theory

Implicit theory relates to the assumptions or beliefs that individuals hold about how the world works or how certain characteristics affect human behavior, often without conscious awareness.