Which of the Following Decreases in Response to the Interest-Rate

question 57

Multiple Choice

Which of the following decreases in response to the interest-rate effect from an increase in the price level?

• A)both investment and consumption
• B)consumption but not investment
• C)investment but not consumption
• D)neither investment nor consumption

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Definitions:

External Attribution

The process of inferring that a person's behavior is due to situational factors, rather than personal traits.

Internal Characteristics

Traits or features that originate within an organism or object and are not influenced by external factors.

Hull

A psychologist known for his drive reduction theory, which suggests that motivation arises from biological needs that drive behavior to seek homeostasis.

Concept Learning

The process through which an individual learns to categorize objects, ideas, or situations into conceptual frameworks.