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.

---

Definitions:

Literary Digest

The Literary Digest was a notable American general interest weekly magazine published in the early 20th century.

Presidential Election

A formal decision-making process by which a country's citizens choose a president, often involving national campaigns and voting.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.

Forensic Psychologists

Professionals who apply psychological principles to legal issues, including assessment of individuals involved in legal cases, and providing expert witness testimony.