Which of the Following Effects Results from the Change in the Interest

question 70

Multiple Choice

Which of the following effects results from the change in the interest rate created by an increase in government spending?

• A)the investment accelerator and crowding out
• B)the investment accelerator but not crowding out
• C)crowding out but not the investment accelerator
• D)neither crowding out nor the investment accelerator

---

Definitions:

Uncertainty-Avoidance Cultures

Cultures that have a low tolerance for uncertainty and ambiguity, leading to well-established norms and rules to minimize the unpredictability of future events.

Openness To Change

The willingness or ability to accept and adapt to new ideas, situations, or innovations.

Geert Hofstede

A Dutch social psychologist known for his research on cross-cultural groups and organizations, especially for developing the cultural dimensions theory.

Uncertainty Avoidance

A cultural dimension that describes the extent to which a society tolerates ambiguity and uncertainty, favoring clear rules and stability.