Which of the Following Illustrates How the Investment Accelerator Works

question 79

Multiple Choice

Which of the following illustrates how the investment accelerator works?

• A)An increase in government expenditures increases aggregate spending so that SnoozeBargain Co.decides to modernize its motels.
• B)An increase in government expenditures increases the interest rate so that SnoozeBargain Co.decides to modernize its motels.
• C)An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by SnoozeBargain Co.rises.
• D)An increase in government expenditures decreases the interest rate so that SnoozeBargain Co.decides to modernize its motels.

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Definitions:

Taste Buds

Nests of taste receptor cells.

Taste Receptor Cells

Specialized cells located on the taste buds that detect and respond to chemical substances, enabling the sense of taste.

Papillae

Knoblike elevations on the tongue, containing the taste buds. (Singular: papilla.)

Synesthesia

A condition in which stimulation of one sense also evokes another.