Investment Spending Will Increase When

question 16

Multiple Choice

Investment spending will increase when

• A)the interest rate rises.
• B)the corporate income tax increases.
• C)business cash flow increases.
• D)firms become more pessimistic about earning future profits.

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Definitions:

Cognitive Dissonance

A theory which suggests that people experience psychological discomfort or stress when they hold two or more contradictory beliefs, ideas, or values at the same time.

Machiavellianism

A personality characteristic involving one’s willingness to do whatever it takes to get one’s own way.

Discord

A lack of agreement or harmony between people or things, often resulting in conflict or disorder.

Cognitive Component

A part of an attitude that encompasses the beliefs, thoughts, and attributes that we have about an object or situation.