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Recall Application 2, "Increased Political Independence for the Bank of England Lowered Inflation Expectations," to
answer the following questions:
-According to the application, the study by Mark Spiegel concluded that inflation expectations decreased after the Bank of England announced political independence because:
Sympathetic Nervous System
A branch of the autonomic nervous system responsible for the body’s fight or flight response, regulating involuntary actions like heart rate and blood flow in reaction to stress.
Parasympathetic Nervous System
A division of the autonomic nervous system responsible for rest and digestion, conserving energy, and lowering heart rate.
James-Lange Theory
A theory of emotion that suggests emotions occur as a result of physiological reactions to events.
Schachter-Singer
A theory of emotion that suggests emotions are based on physiological arousal and the cognitive interpretation of that arousal.
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