Which of the Following Effects Results from the Change in the Interest

question 70

Multiple Choice

Which of the following effects results from the change in the interest rate created by an increase in government spending?

• A)the investment accelerator and crowding out
• B)the investment accelerator but not crowding out
• C)crowding out but not the investment accelerator
• D)neither crowding out nor the investment accelerator

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Definitions:

Stimulation

The activity of promoting or encouraging a physical or biological response through external or internal factors.

All-or-none

A principle stating that the strength of a response of a nerve cell or muscle fiber is not dependent on the strength of the stimulus. If a stimulus is above a certain threshold, a nerve or muscle fiber will fire.

Acetylcholine Agonist

A substance that mimics the action of acetylcholine, a neurotransmitter involved in memory and muscle contraction.

Acetylcholine

A neurotransmitter involved in many functions, including muscle movement, heart rate, memory, and learning.