If Investment Spending Increases Due to Increased Optimism in the Business

question 121

Multiple Choice

If investment spending increases due to increased optimism in the business sector,which of the following would occur?

• A) an increase in GDP,an increase in the price level,an increase in money demand,and an increase in the interest rate
• B) an increase in GDP,a decrease in the price level,an increase in money demand,and a decrease in the interest rate
• C) a decrease in GDP,a decrease in the price level,a decrease in money demand,and a decrease in the interest rate
• D) a decrease in GDP,a decrease in the price level,an increase in money demand,and an increase in the interest rate
• E) an increase in GDP,an increase in the price level,a decrease in money demand,and a decrease in the interest rate

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Definitions:

Historical Experience

Refers to the information and insights gained from past events and situations that influence current decision-making or understanding.

Time-Study Procedure

A method used to determine the time taken for a worker to complete a task, with the goal of increasing efficiency.

Worker's Performance

An evaluation of an employee's work output, efficiency, and effectiveness, often measured against predetermined criteria or standards.

Standard

An established norm or requirement in technical systems, often used to ensure consistency, compatibility, and safety in products and processes.