Interest Rates Fall and Investment Falls

question 7

Multiple Choice

Interest rates fall and investment falls.Which of the following could explain these changes?

• A)The government goes from a surplus to a deficit.
• B)The government repeals an investment tax credit.
• C)The government replaces a consumption tax with an income tax.
• D)None of the above is correct.

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Definitions:

Solvent

A substance, usually a liquid, capable of dissolving other substances (solutes) to form a solution.

Melting Point

The point at which a solid transitions into a liquid under the conditions of atmospheric pressure.

Brønsted-Lowry

A theory in chemistry that defines acids as proton donors and bases as proton acceptors.

Functional Groups

Functional groups are specific groups of atoms within molecules that are responsible for the characteristic chemical reactions of those molecules.