Which of the Following Events Could Explain an Increase in Interest

question 92

Multiple Choice

Which of the following events could explain an increase in interest rates together with a decrease in investment?

• A)The government budget went from surplus to deficit.
• B)The government instituted an investment tax credit.
• C)The government reduced the tax rate on savings.
• D)None of the above is correct.

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Definitions:

Deprivation Motivation

A drive that emerges from a lack of critical psychological or physical needs, leading to behaviors aimed at fulfilling those deficits.

Persistent Motive

A long-standing desire or drive that consistently influences behavior over time.

Humanistic Psychology

Humanistic psychology is a psychological perspective that emphasizes the individual's potential and stresses the importance of growth and self-actualization.

Motivation Psychology

A field of psychology that studies what drives individuals to initiate, direct, and sustain behaviors and actions towards achieving specific goals.