When GDP Growth Declines, Investment Spending Typically ______ and Consumption

question 108

Multiple Choice

When GDP growth declines, investment spending typically ______ and consumption spending typically ______.

• A) increases; increases
• B) increases; decreases
• C) decreases; decreases
• D) decreases; increases

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Definitions:

Phi Phenomenon

An optical illusion of perceived motion created by the rapid succession of images or objects.

Recency Effect

The tendency to remember the most recently presented information best, compared to earlier information.

Consistency

The quality of achieving a level of uniformity, reliability, or steadiness in a given context or over time.

Distinctiveness

Distinctiveness is the feature that makes an object, idea, or person stand out from others in comparison, highlighting unique characteristics.