Assume That Investment Does Not Depend on the Interest Rate

question 38

Multiple Choice

Assume that investment does not depend on the interest rate.A reduction in the money supply will cause which of the following for this economy?

• A)no change in the interest rate
• B)no change in output
• C)a reduction in investment
• D)an increase in investment

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Definitions:

Negatively Reinforced

Strengthening a behavior because a negative condition is removed or avoided as a consequence of the behavior.

Incessant Nagging

Continuous and often repetitive complaining or scolding about something, usually in a bothersome or tiresome way.

Positive Reinforcement

A process that strengthens behavior by providing a reward or positive outcome after the behavior occurs.

Widgets

Small applications or programs, often part of a larger system, designed to perform a specific function for the user.