If the Rate of Depreciation Increases,then User Cost ________ and the Desired

question 32

Multiple Choice

If the rate of depreciation increases,then user cost ________ and the desired capital stock ________.

• A)falls; falls
• B)falls; rises
• C)rises; rises
• D)rises; falls

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Definitions:

Deindividuation

A psychological state occurring in group situations that results in a loss of self-awareness and a decrease in the sense of personal responsibility, often leading to atypical behavior.

Interpersonal Attraction

The force that draws individuals together and the reasons for forming a connection or bond, influenced by physical attractiveness, similarity, social factors, and more.

Mere Exposure

A psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Reciprocity

Reciprocity is a social norm that involves exchanging things with others for mutual benefit, where an action is returned with another equivalent action.