When Firms Invest Less Because People Are Saving Less,it Is

question 107

Multiple Choice

When firms invest less because people are saving less,it is called the ________ effect.

• A) wealth
• B) international trade
• C) interest rate
• D) savings
• E) investment

---

Definitions:

Pituitary Gland

A small, pea-sized gland located at the base of the brain, often referred to as the "master gland" because it controls the functions of many other endocrine glands.

Master Gland

Another term for the pituitary gland, which is responsible for regulating critical body functions and other endocrine glands.

Gray Matter

A major component of the central nervous system, consisting of neuronal cell bodies, neuropil (dendrites and unmyelinated axons), glial cells, and capillaries, involved in muscle control, sensory perception, and decision making.

Myelin-Covered Axons

Nerve fibers that are encased in myelin, a fatty substance that speeds up the transmission of nerve impulses.