Suppose That Investment Rises and Interest Rates Fall

question 141

Multiple Choice

Suppose that investment rises and interest rates fall. Which of the following best explains these changes?

• A)The government went from surplus to deficit.
• B)The government instituted an investment tax credit.
• C)The government reduced the tax rate on savings.
• D)The government repealed an investment tax credit.

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Definitions:

Conformity

Adherence by an individual to group norms so that behavior lies within the range of tolerable behavior.

Obedience

The act of following orders or directions from an authority figure, often studied in the context of social psychology.

Highly Credible Sources

Information sources that are widely regarded as accurate, reliable, and authoritative based on their origin, evidence, and context.

Attitude Change

A change in a person’s attitudes about some issue, person, or situation.