Which of the Following Sequence of Events Follows a Rise

question 242

Multiple Choice

Which of the following sequence of events follows a rise in the discount rate?

• A) r↓ ⇒ I↓ ⇒ AE↓ ⇒ Y↑
• B) r↑ ⇒ I↓ ⇒ AE↓ ⇒ Y↓
• C) r↓ ⇒ I↑ ⇒ AE↑ ⇒ Y↑
• D) r↑ ⇒ I↑ ⇒ AE↑ ⇒ Y↑

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Definitions:

Due Diligence

An investigation or audit of a potential investment or product to confirm all facts, such as reviewing all financial records plus anything else deemed material.

Thalamus

A part of the brain that acts as a principal relay station for sensory information, directing it to appropriate areas of the brain for processing.

Physiological Explanation

An interpretation of a phenomenon or behavior by relating it to physiological processes and biological functions.

Cognition

The cognitive process of gaining awareness and comprehension via thinking, experiencing, and sensory perception.