According to Bernanke's Policy Guide,a Full-Point Decrease in Long-Term Interest

question 3

Multiple Choice

According to Bernanke's policy guide,a full-point decrease in long-term interest rates results in a

• A)$10 billion stimulus for the economy.
• B)$20 billion stimulus for the economy.
• C)$200 billion stimulus for the economy.
• D)$1,000 billion stimulus for the economy.

---

Definitions:

Norms

Shared expectations or rules within a social group that guide behavior and indicate what is considered appropriate or acceptable.

Society

A community of people living together in a more or less organized way, establishing norms and institutions that define the collective social behavior.

Executive Control Centre

A component of the brain responsible for regulating attention, problem-solving, and adaptable behavior in complex situations.

Prefrontal Cortex

The frontal part of the brain involved in complex behaviors such as planning, decision making, and moderating social behavior.