Suppose That Interest Rates and Investment Both Rise

question 85

Multiple Choice

Suppose that interest rates and investment both rise. Which statement best explains these changes?

• A) The government is running a larger deficit.
• B) The government has instituted an investment tax credit.
• C) The government has replaced the income tax with a consumption tax.
• D) The government has reduced its deficit.

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Definitions:

Visible Weaponry

The overt display of weapons or items intended for use in aggression or defense, readily apparent in a social or interpersonal context.

Embryos

Embryos are the early developmental stages of multicellular organisms following fertilization, before becoming fetuses.

Hypothesis

A hypothesis is a tentative explanation for an observation, phenomenon, or scientific problem that can be tested by further investigation or experimentation.

Tentative Explanation

A provisional hypothesis or theory proposed to explain an observation or phenomenon, subject to further investigation and testing.