Which of the Following Is the Most Likely Response to an Increase

question 25

Multiple Choice

Which of the following is the most likely response to an increase in the U.S.real interest rate?

• A)a London bank purchases a U.S.bond instead of a Japanese bond it had considered purchasing
• B)U.S.firms decide to buy more capital goods
• C)a U.S.citizen decides to put less money in his savings account than he had planned.
• D)All of the above are consistent.

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Definitions:

Social Cognition Module

A presumed specialized brain mechanism or cognitive system that facilitates understanding, predicting, and processing social information.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.

Autobiographical Memory

refers to an individual's memory of events and experiences from their own life, forming a personal history.

Memory Capacity

The amount of information that an individual can store in their memory system over short-term or long-term periods.