Use the Following to Answer Questions

question 162

Multiple Choice

Use the following to answer questions .
Exhibit: Effects of Monetary Policy
-(Exhibit: Effects of Monetary Policy) Which of the following actions by the Fed could have caused the movement from AD₁ to AD₂ in Panel (a) ?

• A) selling government bonds in the open market
• B) buying government bonds in the open market
• C) increasing the discount rate
• D) increasing the federal funds rate

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Definitions:

Normative Influence

When people conform to social norms for fear of negative social consequences.

Presence of Others

The phenomenon of how an individual's thoughts, feelings, and behaviors can be influenced by the physical or imagined presence of others.

Helping Behavior

Acts performed with the goal of benefiting another person, regardless of the helper's motives.

Conformity

The tendency to align one's attitudes, beliefs, and behaviors with those of a group or social norm.