Suppose the Fed Changes the Interest Rate in an Attempt

question 22

Multiple Choice

Suppose the Fed changes the interest rate in an attempt to raise planned investment.But in spite of this,planned investment remains unchanged.The most likely explanation is that

• A)we have moved downward along an unchanged rate-of-return line.
• B)we have moved upward along an unchanged rate-of-return line.
• C)the rate-of-return line has shifted to the left.
• D)the rate-of-return line has shifted to the right.

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Definitions:

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Persuasion

The act of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through argument, reasoning, or appeal to emotion.

Positive Attitudes

A mental state involving positive feelings or beliefs about a person, object, or situation.

Slogans

Short, memorable phrases designed to encapsulate and promote the ideals, goals, or products of an entity.