Consider the Long-Run Theory of Investment,saving and Growth

question 90

Multiple Choice

Consider the long-run theory of investment,saving and growth.For a given level of national income,a decrease in private consumption or government purchases will cause the equilibrium interest rate to

• A)increase and the flow of national saving to fall.
• B)increase and the flow of investment to increase.
• C)increase and the flow of investment to decrease.
• D)decrease and the flow of investment to decrease.
• E)decrease and the flow of investment to increase.

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Definitions:

Middle Adulthood

A stage of life typically covering the age range from 40 to 65, often marked by stability in relationships, careers, and personal identity.

Midlife Crisis

A psychological crisis over identity and self-confidence that can occur in middle-aged individuals, typically between the ages of 40 and 60.

Levinson

Levinson is a surname that might refer to various individuals, including Daniel J. Levinson, an American psychologist known for his theory on human development, especially regarding adulthood stages.

Marker Events

Significant occurrences or milestones that mark an important change or stage in a person’s life, such as birth, marriage, or retirement.