Suppose It Is an Election Year and the Economy Is

question 69

Multiple Choice

Suppose it is an election year and the economy is in a recession. The opposition candidate proposes an investment tax credit to take effect next year after she takes office. If the public believes the opposition candidate has a good chance of winning, the effect of this promise will likely be to:

• A)increase investment both this year and next year.
• B)decrease investment both this year and next year.
• C)increase investment this year and decrease it next year.
• D)decrease investment this year and increase it next year.

---

Definitions:

Componential Intelligence

An aspect of human intelligence involving analytic problem-solving skills, including the ability to evaluate, analyze, and solve problems.

Bodily-Kinesthetic Intelligence

A type of intelligence defined by Howard Gardner that involves skill in physical movement and the use of the body to express ideas and feelings.

Professional Basketball

A level of basketball competition that involves athletes who receive payment for their performance and is organized by leagues worldwide.

Practical Intelligence

A form of intelligence that involves the ability to resolve real-world problems through adaptive or creative reasoning and effectively apply knowledge and skills in everyday situations.