Imagine You Are Walking Down the Street and Passed by a Driver

question 12

Multiple Choice

Imagine you are walking down the street and passed by a driver who needed money for the parking meter. According to research on compliance, under which of the following conditions would you be most likely to give the driver some spare change?

• A) when the request for change came from a fashionably dressed person
• B) when the request for change came from a poorly dressed person
• C) when the request for change came from a uniformed parking officer
• D) when the request for change came from the driver's young child

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Definitions:

Monetary Policy

The process by which a central bank or monetary authority manages the supply of money and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

Fiscal Policy

Government policies concerning taxation and spending that are aimed at influencing macroeconomic conditions, including unemployment, inflation, and economic growth.

Fiscal Policy

Government policies related to taxation and spending aimed at influencing the economy.

MPC

Marginal Propensity to Consume, a metric in economics that measures the proportion of income changes that is spent on consumption.