Additional Investments in Machines That Enhance the Ability to Produce

question 7

Multiple Choice

Additional investments in machines that enhance the ability to produce goods and services imply that

• A) the owners of the investments will necessarily have to borrow funds.
• B) the owners of the investments will necessarily have to reduce their current consumption.
• C) someone will have to reduce current consumption.
• D) future consumption will have to be reduced.

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Definitions:

Negative Emotions

Emotions that are generally perceived as undesirable, such as sadness, anger, and fear, and are often a response to undesirable experiences or thoughts.

Adaptation-level Phenomenon

The psychological experience of judging new stimuli and events based on past experiences or a baseline level of past stimuli.

Day-to-day Happiness

The experience of joy, contentment, or positive well-being, combined with a sense that one's life is good, meaningful, and worthwhile on a daily basis.

Money Buy Happiness

The debate concerning whether material wealth can significantly increase an individual's level of happiness or well-being.