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:

Figure-Ground Relationship

A visual perception principle stating that people instinctively perceive objects (the figure) as distinct from their surroundings (the ground).

Binocular Disparity

The difference in the images seen by the left and right eye, which contributes to the perception of depth.

Good Continuation

A principle in Gestalt psychology that states people tend to perceive connected lines or patterns as continuing in a smooth, uninterrupted manner.

Cochlear Implant

A medical device that bypasses damaged structures in the inner ear and directly stimulates the auditory nerve, allowing individuals with severe to profound hearing loss to perceive sound.