Answer the Question on the Basis of the Following Information

question 107

Multiple Choice

Answer the question on the basis of the following information for a private closed economy.Assume that for the entire business sector of the economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more.But there are $15 worth of investments that will yield an expected rate of return of 20-25 percent;another $15 with an expected rate of return of 15-20 percent;and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range. Refer to the given information.The expected rate of return curve:

• A) shows a direct relationship between the interest rate and investment.
• B) is also the investment demand curve.
• C) is indeterminate.
• D) implies a direct (positive)relationship between the interest rate and the level of GDP.

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Definitions:

Vygotsky's Theory

A cognitive development theory proposed by Lev Vygotsky, which emphasizes the roles of social interaction and culture in the development of cognition and learning.

Piagetian Theory

A theory of cognitive development that describes how children construct a mental model of the world around them in distinct stages of cognitive development.

Social Experiences

Interactions with others and the environment that contribute to the development of an individual's beliefs, attitudes, and behaviors.

Habituation-Dishabituation

The process by which an organism decreases or stops its response to a repetitive stimulus (habituation) and then increases its response again when the stimulus changes or is new (dishabituation).