Which of the Following Policy Changes Would Lead to a Decrease

question 17

Multiple Choice

Which of the following policy changes would lead to a decrease in the real interest rate and an increase in investment and saving?

• A)a larger investment tax credit
• B)an expansion of eligibility for Individual Retirement Accounts
• C)an increase in income-tax rates,with no change in the government budget deficit or surplus
• D)an increase in government purchases,with no change in taxes

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Definitions:

Classical Conditioning

A method of learning that happens by linking an environmental stimulus with a naturally occurring stimulus.

Cognitive Processes

The mental actions or processes involved in acquiring knowledge and understanding through thought, experience, and the senses.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex, often examined within social psychology and sociology.

Generalization

A principle in psychology that refers to the tendency of a response that is learned to one stimulus to be elicited by similar but distinct stimuli.