Economist a Believes That the Elasticity of Investment Is 1

question 15

Multiple Choice

Economist A believes that the elasticity of investment is 1.47 while economist B believes that the elasticity of investment is 0.76.Which economist,A or B,is more likely to believe that a change in the interest rate will change the current economic environment?

• A) Economist A,since she believes that investment is more sensitive to changes in interest rates than does economist B.
• B) Economist B,since she believes that investment is more sensitive to changes in interest rates than does economist A.
• C) Economist A,since she believes that investment is less sensitive to changes in interest rates than does economist B.
• D) Economist B,since she believes that investment is less sensitive to changes in interest rates than does economist A.

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Definitions:

Pluralist

Pertaining to a system or philosophy that acknowledges multiple distinct interests, perspectives, or parties coexisting within society.

Individual Differences

Variabilities among individuals in behavior, personality, or cognitive processes.

Balance Of Power

A situation in which different forces, powers, or influences are distributed in a way that ensures no single entity or group has dominance over others.

Verbal Harassment

The use of words to belittle or demean another person, often creating an offensive or hostile environment.