Delia Loves to Travel and Loves Exploring and Being Surprised

question 43

Multiple Choice

Delia loves to travel and loves exploring and being surprised about what is around the next corner.She does not like to plan ahead too much because she believes that you never know where you'll be at the end of the day.Her partner,Sal,likes to plan ahead and learn where all the sights are and to book the best hotels based on their budget.This difference is the cause of much arguing,and,for their upcoming trip,Delia is trying to convince Sal to book a "last minute" surprise trip on a website where they would not even know their destination until the trip was booked.In contrast,Sal has developed a day-by-day plan for a trip to Italy.What best describes the situation in which Delia and Sal have found themselves? Delia and Sal:

• A) have polarized around the issue of planning.
• B) are engaging in negative reciprocity.
• C) probably have low levels of epinephrine as a result of their conflict.
• D) are positively reinforcing each other's position in the conflict.

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Definitions:

Spending Multiplier

The spending multiplier is an economic concept that measures the effect of a change in autonomous spending (such as government expenditure or investment) on the total economic output.

Potential Output

Potential Output refers to the highest level of goods and services an economy can produce sustainably, without triggering inflation.

Government Securities

Government-issued securities designed to fund government spending while providing investors with a profit.

Discount Rate

The interest rate charged by central banks on loans they provide to commercial banks, influencing monetary policy and the money supply.