Just as Would Be Predicted by a Forward-Looking Theory of Investment

question 2

Multiple Choice

Just as would be predicted by a forward-looking theory of investment, response to the Tax Reform Act of 1986 included

• A) an increase in investment in business equipment in the first quarter of 1986 after a reduction of similar magnitude in the last quarter of 1985.
• B) an increase in investment in business equipment appearing suddenly in January 1986.
• C) a reduction in investment in business equipment in the first quarter of 1986 after an increase of similar magnitude in the last quarter of 1985.
• D) a reduction in investment in business equipment appearing suddenly in January 1986.
• E) almost no change in investment in business equipment either late in 1985 or early in 1986.

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Definitions:

Climate Change

The systematic increase in worldwide surface temperatures and the resulting ecological change.

Severe Storms

Extreme weather phenomena that can cause significant damage and hazard, including hurricanes, tornadoes, thunderstorms, and hailstorms.

Covert Participant Observation

The form of participant observation wherein the observed individuals are not told that they are being studied.

Hawthorne Effect

The change in how subjects act because they know they're being watched.