The Political Business Cycle Theory Predicts That

question 8

Multiple Choice

The political business cycle theory predicts that

• A)the Fed acts to promote the interests of the general public.
• B)the Fed acts to stimulate economic activity before an election.
• C)the President's appointments to the Board of Governors will usually be politicians.
• D)political factors over which the Fed has no control are most important in explaining the business cycle.

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Definitions:

Long-Term Memory

A type of memory responsible for the storage of information over an extended period, ranging from days to decades.

Memory Consolidation

The method through which memories from the short-term are converted into long-term storage.

Long-Term Storage

Describes the phase of memory in which information is retained for extended periods of time, ranging from minutes to a lifetime.

Hippocampus

A major component of the brain of humans and other vertebrates, playing critical roles in the consolidation of information from short-term memory to long-term memory and spatial navigation.