Answer the Questions Below

question 138

Essay

Answer the questions below:
(A)What are the advantages of the Fed increasing interest rates when the GDP gap is positive?
(B)What are the disadvantages of the Fed increasing interest rates when it believes the GDP gap is positive?

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.