Other Things Equal, If There Is an Increase in Nominal

question 235

Multiple Choice

Other things equal, if there is an increase in nominal GDP,

• A) the demand for money will decrease.
• B) the interest rate will rise.
• C) bond prices will rise.
• D) consumption spending will fall.

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Definitions:

Terror Management Theory

A psychological concept suggesting that fear of death motivates individuals to adhere to cultural beliefs and values, providing a sense of immortality through symbolic or literal means.

Approach Motivation

The drive or inclination to move towards, engage in, or achieve a positive outcome or reward.

Empathy

The ability to understand and share the feelings of another.

Power Distance

Variation in the extent to which members of a culture or an organization (especially those with less power) accept an unequal distribution of power.