Which of the Following Concepts Is Most Helpful in Explaining

question 175

Multiple Choice

Which of the following concepts is most helpful in explaining why investment increases when the interest rate falls?

• A)deadweight loss
• B)present value
• C)economic growth
• D)financial intermediation

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Definitions:

Hypotheses

Proposed explanations or predictions that can be tested through research and experimentation.

Theories

Systematically organized principles or explanations about phenomena or relationships in the universe.

Experiments

Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Correlations

Statistical measures that indicate the extent to which two or more variables fluctuate together.