Which of the Following Would Cause the Fed to Raise

question 52

Multiple Choice

Which of the following would cause the Fed to raise interest rates even though the rate of inflation is equal to the target rate?

• A)An increase in household wealth
• B)An increase in potential GDP
• C)An increase in imports
• D)A reduction in government purchases
• E)A reduction in business confidence

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Definitions:

Do Your Best Goal

A type of goal setting where individuals are encouraged to give their best effort without specific, measurable objectives.

Process Theories

Theories in psychology and management that focus on how people perceive and respond to different inputs and how this influences motivation and behavior.

Performance-Avoid Goal Orientation

A preference to avoid negative judgments about the outcome of one’s performance.

Performance-Prove Goal Orientation

A preference to obtain favourable judgments about the outcome of one’s performance.