Which of the Following Is Correct

question 10

Multiple Choice

Which of the following is correct?

• A)Well designed tax cuts can increase investment which fluctuates more than consumption over the business cycle.
• B)Well designed tax cuts can increase investment but it fluctuates less than consumption over the business cycle.
• C)Tax cuts have little effect on investment which fluctuate more than consumption over the business cycle.
• D)Tax cuts have little effect on investment but it fluctuates less than consumption over the business cycle

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Definitions:

Short-Term Memory

A cognitive system with a limited capacity that is responsible for the temporary holding of information available for processing.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Atkinson-Shiffrin

A model of memory proposed by Richard Atkinson and Richard Shiffrin that describes it in terms of three stores: sensory memory, short-term memory, and long-term memory.

Activated Memory

Memory that is readily accessible and currently in use.