Which of the Following Illustrates How the Investment Accelerator Works

question 240

Multiple Choice

Which of the following illustrates how the investment accelerator works?

• A) An increase in government expenditures increases aggregate spending so that Gas-n-Go decides to modernize its gas stations.
• B) An increase in government expenditures increases the interest rate so that Gas-n-Go decides to modernize its gas stations.
• C) An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by Gas-n-Go rises.
• D) An increase in government expenditures decreases the interest rate so that Gas-n-Go decides to modernize its gas stations.

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Definitions:

Table

A collection of data arranged in rows and columns, commonly used in databases and data manipulation.

Rows

In the context of two-dimensional data structures or databases, horizontal groups of data fields or elements that together represent a single record or entry.

Columns

Vertical divisions in a table or spreadsheet, categorizing information by field.