Pluralistic ignorance exists when
A) the members of a group believe one thing but mistakenly assume that most of the other members believe something else.
B) a group of bystanders all agree that something needs to be done but each feels less personal responsibility for taking action because each perceives that there are others who could take action.
C) a majority of people in a group do not have the intellectual capacity of arriving at a viable solution to a public goods problem.
D) the least-capable member of a group exerts his influence over the rest of the group when trying to arrive at a decision on how to internalize an externality.
Question 2
If investment demand increases, the equilibrium real interest rate ________ and the equilibrium quantity of investment ________.
A) rises; decreases
B) falls; decreases
C) falls; increases
D) rises; increases
E) does not change; does not change
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