Because the Carter Credit Controls of 1980 Were Unexpected and Imposed

question 31

Multiple Choice

Because the Carter credit controls of 1980 were unexpected and imposed by the government, we can conclude that

• A)the subsequent decline in demand for bank loans most likely caused the 1980 recession.
• B)the subsequent decline in bank loans was the result of a shift in bank loan supply that was independent of any shift in bank loan demand.
• C)the subsequent decline in the supply of bank loans was most likely caused by the 1980 recession.
• D)the controls led to an increase in the demand for money.

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Definitions:

Controlled

An experiment or situation where variables are manipulated or regulated deliberately to test causality or assess outcomes.

Heider's

Fritz Heider's attribution theory focuses on how people interpret events and relate them to their thinking and behavior.

Balance Theory

A psychological theory proposing that individuals strive for psychological consistency in their relationships and beliefs, leading them to change attitudes or relationships to maintain balance.

Relationships

Connections or associations between people, based on kinship, love, solidarity, professional interactions, or other social commitments.