The Increase in Spending That Occurs Because the Demand for Investment

question 136

Multiple Choice

The increase in spending that occurs because the demand for investment goods increases when the price level falls is known as the

• A) interest rate effect.
• B) international trade effect.
• C) price effect.
• D) wealth effect.

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Definitions:

Forced Assimilation

The process where individuals or groups are compelled to abandon their own culture, language, or identity to conform to those of a dominating or majority culture.

Dawes Act

Law passed in 1887 meant to encourage adoption of white norms among Indians; broke up tribal holdings into small farms for Indian families, with the remainder sold to white purchasers.

Popular Front

A period during the mid-1930s when the Communist Party sought to ally itself with socialists and New Dealers in movements for social change, urging reform of the capitalist system rather than revolution.

Communist Party

A political party that advocates for the principles of communism, aiming to establish a classless society based on common ownership of the means of production and the absence of social classes, money, and the state.