When the Interest Rate in the U

question 261

Multiple Choice

When the interest rate in the U.S. decreases as a result of expansionary monetary policy, investment spending _____ and consumption _____ .

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases

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Definitions:

Repression

A defense mechanism in psychoanalytic theory where uncomfortable thoughts, memories, or desires are pushed out of conscious awareness.

Topographical Model

A Freudian theory in psychology which divides the human mind into the conscious, preconscious, and unconscious parts.

Conscious

Refers to the awareness of one's own existence, sensations, thoughts, surroundings, and abilities.

Preconscious

Pertains to thoughts and feelings that are not currently in conscious awareness but can be easily recalled or accessed.