An Increase in the Domestic Interest Rate Relative to Other

question 96

Multiple Choice

An increase in the domestic interest rate relative to other interest rates should

• A)increase investment spending.
• B)decrease consumption spending.
• C)increase government spending.
• D)increase net exports.

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Definitions:

Instinctive Behavior System

A set of inborn behavioral patterns that are triggered by specific environmental stimuli.

Fixed Action Patterns

Innate, pre-programmed responses triggered by specific stimuli, exhibited by animals.

Innate Releasing Mechanism

A hypothetical mechanism in the brain considered to be triggered by specific stimuli, leading to certain patterns of behavior.

Social Releaser

A stimulus originating from one individual that triggers a social response or behavior in another individual.