The Accelerator Theory Is a Theory of Investment That States

question 96

Multiple Choice

The accelerator theory is a theory of investment that states that current investment spending depends:

• A) positively on last years growth in real GDP.
• B) positively on the expected future growth of real GDP.
• C) positively on the investment levels last period.
• D) negatively on the expected future growth of real GDP.

Understand the concept of the endowment effect in behavioral economics.

Recognize how prospect theory explains human behavior towards risks and rewards.

Identify the influence of anchoring on decision-making.

Grasp the key principles of behavioral economics related to gains, losses, and status quo.

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Definitions:

IPSPs

Short for Inhibitory Postsynaptic Potentials, these are electrical changes in the postsynaptic neuron that make it less likely to generate an action potential, thereby inhibiting the neuron.

Potassium Channels

Protein channels in cell membranes that allow potassium ions to pass in and out of the cell, playing key roles in cell signaling and electrical conductivity.

Sodium Channels

A type of ion channel found in the membranes of cells, specifically permeable to sodium ions, crucial for initiating and conducting electrical signals in neurons.

Action Potentials

Rapid and temporary electrical impulses that travel along neurons, essential for nerve impulse transmission.