Which of the Following Is True Regarding Investment

question 65

Multiple Choice

Which of the following is true regarding investment?

• A) In the short run it increases aggregate supply but in the long run it increases aggregate demand.
• B) In the short run it influences aggregate demand and in the long run it influences the rate at which the economy grows.
• C) In the short run it influences aggregate demand but in the long run it retards economic growth since it requires saving.
• D) In the short run it reduces aggregate demand because it requires savings but in the long it promotes economic growth.

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Definitions:

Disagreeableness

A personality trait characterized by a tendency towards being critical, antagonistic, and uncooperative in social settings.

Hostile Attribution Bias

The tendency to see others as hostile and aggressive.

Openness To Experience

A personality trait involving the willingness to try new things, engage in abstract thinking, and appreciate art and beauty.

Politically Liberal

Holding or expressing political views that favor progress, reform, and the protection of civil liberties.