A Key Premise of Maslow's Hierarchy of Needs Theory Is

question 55

Multiple Choice

A key premise of Maslow's hierarchy of needs theory is that

• A)people's needs are based on their wants.
• B)people's needs are arranged in a hierarchy of importance.
• C)higher order needs have to be satisfied first.
• D)satisfied needs are motivators and unsatisfied needs are not motivators.

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Definitions:

Friedman Rule

A monetary policy rule proposed by economist Milton Friedman, suggesting that the optimal nominal interest rate is zero to eliminate the opportunity cost of holding money.

Deflation

A decrease in the general price level of goods and services, often indicating an economic slowdown.

Inflation

The velocity at which the aggregate price level for goods and services elevates, thereby reducing purchasing capability.

Nominal Interest Rate

The interest rate before adjustments for inflation. It is the rate quoted on loans and deposits.