Which Statement Is True

question 235

Multiple Choice

Which statement is true?

• A)The expected rate of profit is very high during depressions.
• B)The best environment for most investment projects is a high rate of interest and a low marginal efficiency of capital.
• C)The higher the marginal efficiency of capital,the more likely an investment project will be carried out.
• D)None is true.

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Definitions:

Sherifs

Refers to Muzafer Sherif, a social psychologist known for his work on social norms and the Robbers Cave Experiment on intergroup conflict and cooperation.

Appeasement

A conflict resolution strategy where one party attempts to pacify another by conceding to their demands, often to avoid conflict.

Competition

A situation in which individuals or entities strive against each other to achieve a goal that cannot be shared.

Cooperative Reactions

Actions undertaken by individuals or groups that are designed to work together in a mutually beneficial manner.