There Is a Negative Demand Shock When

question 267

Multiple Choice

There is a negative demand shock when

• A) interest rates fall.
• B) consumers become more optimistic.
• C) government reduces net taxes.
• D) interest rates rise.
• E) government spending increases.

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Definitions:

Convergent Validity

The extent to which two measurements of constructs, which are expected to have a theoretical correlation, actually do exhibit a relationship.

Reactivity

The alteration of the behavior of study participants due to their awareness of being observed.

Interval Scale

A type of scale used in measurements that expresses the order of variables and also establishes a defined distance between variables, but lacks a true zero point.

Ordinal Scale

A scale of measurement where objects or individuals are categorized based on some order or ranking, without information on the magnitude of differences.