Which of the Following Illustrates How the Investment Accelerator Works

question 89

Multiple Choice

Which of the following illustrates how the investment accelerator works?

• A)An increase in government expenditures increases the interest rate so that the Hair City chain of hair salons decides to build fewer new salons.
• B)An increase in government expenditures increases aggregate spending so that Hair City finds it profitable to build more new salons.
• C)An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by Hair City increases.
• D)An increase in government expenditures decreases the interest rate so that Hair City decides to build more new salons.

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Definitions:

Compensatory Education

Educational policies or programs designed to overcome deficits in a child's educational experiences, aiming to improve skills and provide opportunities especially for disadvantaged children.

Social Programs

Government initiatives designed to provide support and assistance to the population, such as healthcare, education, and housing.

Remedial Programs

Educational programs designed to improve skills in areas where students are underperforming or lacking, often focusing on reading, writing, and mathematics.

Special Education

Tailored education programs designed to meet the unique needs of students with disabilities or exceptionalities.