A Reduction in Real Interest Rates Will Cause the Demand

question 41

Multiple Choice

A reduction in real interest rates will cause the demand for new homes to

• A)increase, which results in an increase in investment expenditures.
• B)increase, which results in an increase in consumption expenditures.
• C)decrease, which results in a decrease in investment expenditures.
• D)decrease, which results in a decrease in consumption expenditures.
• E)increase, which will result in an increase in business fixed investment.

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Definitions:

Emotion-focused Coping

Strategies designed to manage emotional distress rather than dealing with the root problem.

Problem-focused Coping

A strategy for dealing with stress by tackling the problem directly, aimed at changing or eliminating the source of the stress.

Implementation Intentions

A self-regulatory strategy in the form of if-then plans that specify when, where, and how to act towards a goal.

Primary Appraisal

the initial evaluation process in which an individual assesses the significance of a stressor as irrelevant, beneficial, or stressful.