Assume That a Temporary Tax Break Has Been Put in Place

question 59

Multiple Choice

Assume that a temporary tax break has been put in place that allows for an increase in allowable depreciation.If and when the government changes the depreciation allowance back to its original amount,the desired capital stock will ________ and investment spending will ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

---

Definitions:

Stanford Prison Experiment

A psychological study conducted in 1971 by Philip Zimbardo, investigating the effects of perceived power, focusing on the struggle between prisoners and prison officers.

Philip Zimbardo

A psychologist known for his research on social psychology, including the Stanford prison experiment.

Male College Volunteers

A specific demographic often used in psychological and medical research studies to understand behavior or test hypotheses.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or aspects, such as the attractiveness of the speaker, rather than logical arguments.