Holding All Other Factors Constant,a Higher Relative Price of a Firm's

question 71

Multiple Choice

Holding all other factors constant,a higher relative price of a firm's output will

• A) increase national saving.
• B) decrease national saving.
• C) increase business investment.
• D) decrease business investment.
• E) increase private saving.

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Definitions:

Unattended Information

Information that is present in the environment but is not the focus of one's attention and hence is processed minimally or not at all.

Sensory Memory

The shortest-term element of memory, which allows retention of impressions of sensory information after the original stimuli have ended.

Primacy and Recency Effects

Psychological terms describing the tendency to remember information that appears at the beginning (primacy) and end (recency) of a list better than information in the middle.

Memory

The cognitive process of encoding, storing, and retrieving information.