Four Participants Sign Up for an Experiment Examining the Effects

question 179

Multiple Choice

Four participants sign up for an experiment examining the effects of alcohol on sociability.One participant is given an alcoholic beverage to drink and is told that it is alcohol.A second participant is given an alcoholic beverage to drink but is told that it is nonalcoholic.A third participant drinks a nonalcoholic beverage but is told that it contains alcohol,and a fourth participant is given a nonalcoholic beverage and is told that it is nonalcoholic.Suppose that the effects of alcohol on sociability were entirely due to the alcohol and had nothing to do with expectancies.Which participant(s) would behave more socially after drinking?

• A)the second participant only
• B)the third participant only
• C)the first and third participants
• D)the first and second participants

---

Definitions:

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par.

Yield Curve

A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

Normal Yield Curve

A graphical representation that shows interest rates on bonds of different maturities tend to increase the longer the term to maturity, under normal market conditions.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period.