An Increase in the Interest Rate Will Cause

question 116

Multiple Choice

An increase in the interest rate will cause

• A)the quantity of investment spending to increase.
• B)the quantity of investment spending to decrease.
• C)the investment function to shift out.
• D)the investment function to shift in.

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Definitions:

Don't Know What To Do

A state of uncertainty or confusion about the course of action to be taken in a situation.

Emergencies Occur Suddenly

A statement describing how emergencies arise without warning, requiring immediate action.

Diffusion Of Responsibility

a socio-psychological phenomenon whereby individuals are less likely to take action or feel a sense of responsibility in the presence of a large group of people.

Obedience To Authority

The tendency to follow orders or directions from someone recognized as a figure of authority.