Which of the Following Illustrates How the Investment Accelerator Works

question 79

Multiple Choice

Which of the following illustrates how the investment accelerator works?

• A)An increase in government expenditures increases aggregate spending so that SnoozeBargain Co.decides to modernize its motels.
• B)An increase in government expenditures increases the interest rate so that SnoozeBargain Co.decides to modernize its motels.
• C)An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by SnoozeBargain Co.rises.
• D)An increase in government expenditures decreases the interest rate so that SnoozeBargain Co.decides to modernize its motels.

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Definitions:

Specialty Products

High-value or unique items that consumers purchase after extensive searching and comparison, often including luxury goods or niche market items.

Burial Services

Professional services offered by funeral homes and cemeteries that include preparing the deceased for burial and conducting the burial ceremony.

Convenience Products

Items that are widely available and easy to purchase, typically requiring minimal effort by the consumer to obtain them.

Business Products

Business products are goods or services sold by one business to another for resale, use in production, or general business operations.