The Notion of Business Investment Being Related to Interest Rates

question 116

Multiple Choice

The notion of business investment being related to interest rates is shown when interest rates are

• A)higher, more projects (where businesses borrow capital to start new lines of business)are profitable.
• B)higher, fewer projects (where businesses borrow capital to start new lines of business)are profitable.
• C)higher, people are less likely to buy expensive goods on installments.
• D)higher, people are more likely to buy expensive goods on installments.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.