Monetary Policy Includes All the Following Assumptions EXCEPT That

question 23

Multiple Choice

Monetary policy includes all the following assumptions EXCEPT that

• A)the money supply is the key to sustaining a healthy economy.
• B)too little money in circulation contributes to inflation.
• C)too little money in circulation contributes to a slowdown in consumer buying.
• D)too little money in circulation contributes to a slowdown in production.
• E)too much money in circulation contributes to inflation.

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Definitions:

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, often referred to as the "I-knew-it-all-along" effect.

Just-World Phenomenon

The cognitive bias that a person's actions are inherently inclined to bring morally fair and fitting consequences to that individual, to the end of all noble actions are rewarded and evil actions are punished.

Scapegoating

The practice of singling out any party for unmerited negative treatment or blame.

Other-Race Effect

The tendency to more easily recognize faces of one's own race, compared to faces of other races, often attributed to social and cognitive factors.