Which of the Following Will NOT Lead to a Shift

question 413

Multiple Choice

Which of the following will NOT lead to a shift in the investment function?

• A)A firm downgrades its future profitability.
• B)A new discovery leads to a technological advancement.
• C)The government just lowered business taxes.
• D)The cost of borrowing has just decreased.

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Definitions:

Decay

The natural process of decomposition or decline in quality, strength, or vigor over time.

Encoding Failure

A situation in which information fails to be stored into long-term memory, leading to the inability to recall it later.

Elaboration Failure

The inability to add detail or supplement information to a memory or concept, often leading to a lack of depth in understanding or recall.

Retroactive Interference

A process where new information interferes with the ability to recall older information.