Which of the Following Events Could Explain a Decrease in Interest

question 195

Multiple Choice

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

• 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)None of the above is correct.

---

Definitions:

Work Ethic

The principle that hard work is intrinsically virtuous or worthy of reward, emphasizing diligence, reliability, and a dedication to completing tasks.

Lower Income

A relative measure indicating a group or individual who earns less than the median or average income within a given society.

Invest More Conservatively

To allocate resources, usually finances, into lower-risk investments with the expectation of earning a steady, but possibly lower, return.

Surrogate Parents

Individuals who act in place of a child's biological parents, providing care and nurturing.