Scenario 13-2

question 438

Multiple Choice

Scenario 13-2. Assume the following information for an imaginary, closed economy.
GDP = $200,000; consumption = $120,000;
government purchases = $35,000; and taxes = $25,000.
-Refer to Scenario 13-2. Suppose, for this economy, the relationship between the real interest rate, r, and investment, I, is given by the equation I = 69,000 - 3,000r. (If, for example, r = 10, this means that the real interest rate is 10 percent.) The equilibrium real interest rate for this economy is

• A)6 percent.
• B)7 percent.
• C)8 percent.
• D)9 percent.

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Definitions:

Overjustification Effect

Occurs when an external incentive such as a reward, decreases a person's intrinsic motivation to perform a task.

Self-handicapping

Strategies people use to create obstacles and excuses for themselves so they can avoid blame for possible future failures.

Anticipatory Excuses

The justifications or reasons provided in advance to mitigate potential future blame or negative judgements.

Subsequent Performances

Refers to the performances or actions that follow an initial event or activity, often analysed to gauge improvement, decline, or consistency over time.