An Increase in Autonomous Investment Causes Equilibrium Output to _____

question 43

Multiple Choice

An increase in autonomous investment causes equilibrium output to _____ and the equilibrium interest rate to

• A) rise, rise.
• B) rise, fall.
• C) fall, rise.
• D) fall, fall.

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Definitions:

Consistency

The adherence to the same principles, course, or form over time, often considered a hallmark of reliability or stability in contexts or behaviors.

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Social Psychology

The scientific study of how individuals think, feel, and behave in the context of social interactions and how they are influenced by the actual or implied presence of others.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.