As Described in the Textbook, in the Late 1500s a Hungarian

question 37

Multiple Choice

As described in the textbook, in the late 1500s a Hungarian nobleman named Count Zrinyi was attacked at his small castle by a force of almost 100,000 men. Zrini had no chance of survival in the face of this attack. In the moments before he was killed, however, instead of attempting to flee for his life or fight against the enemy, he put on his finest attire, hung a heavy gold chain around his neck, and stuffed his pockets full of gold coins. He then flung open the doors of the castle and charged into a suicide death. This story is used in the textbook to make the point that ____.

• A) many people believe in an afterlife
• B) people often become delusional when under high levels of stress
• C) many people care strongly about self-presentation
• D) most people have a hard time accepting their own mortality

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Definitions:

Aggregate Demand

The total demand for all goods and services within a particular economy at a given overall price level and in a given time period.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender, often expressed as an annual percentage rate (APR).

Multiplier

In macroeconomics, a factor that quantifies how an initial change in spending will affect total economic output.

Crowding-out Effects

The phenomenon where increased government spending leads to a reduction in private sector spending.