During an Economic Expansion Due to an Increase in Technology

question 46

Multiple Choice

During an economic expansion due to an increase in technology, A, consumption will:

• A)tend to fall due to the income effect.
• B)may rise or fall depending on whether the income effect is greater than the substitution effect or not.
• C)tend to rise due to the intertemporal substitution effect of the interest rate rising.
• D)all of the above.

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Definitions:

Achievement Motivation

A psychological construct that drives individuals to pursue and attain goals, often influencing their success in various tasks.

Learning Goal

An educational objective or aim that a person sets for themselves, focusing on acquiring knowledge or mastering a skill.

Altruistic Aim

The goal of acting with selfless concern for the well-being of others.

Extrinsic Goal

An objective that is motivated by external factors, such as rewards or recognition from others.