Which of the Following Illustrates How the Investment Accelerator Works

question 207

Multiple Choice

Which of the following illustrates how the investment accelerator works?

• A)An increase in government expenditures increases the interest rate so that the Sleepwell Hotel chain decides to build fewer new hotels.
• B)An increase in government expenditures increases aggregate spending so that the Sleepwell Hotel chain finds it profitable to build more new hotels.
• C)An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by the Sleepwell Hotel chain rises.
• D)An increase in government expenditures decreases the interest rate so that the Sleepwell Hotel chain decides to build more new hotels.

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Definitions:

Facial Muscles

A group of skeletal muscles under the facial skin that control facial expressions.

Facial Feedback

The theory that facial expressions can influence emotional experiences.

Primary Emotional Processing

The initial, automatic emotional response to a stimulus before it is moderated by higher cognitive processes.

Internal Emotion Work

The process of managing and altering one's emotional experiences or expressions to meet social expectations or personal goals.