Regarding Government Manipulation of the Interest Rate, All of These

question 161

Multiple Choice

Regarding government manipulation of the interest rate, all of these statements are correct, except:

• A)​To address business fluctuations, governments may reduce interest rates to induce people to borrow.
• B)​Such manipulations may give little thought to the effects on resource allocation between present and future.
• C)​Economists agree with the concept of using of interest rates to allocate resources among different time periods.
• D)​Generally, the price system reflects public preference between present and future resource allocation.

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Definitions:

Incremental

Refers to a process of adding or making changes in a series of small, gradual steps.

Entity

Something that exists as a particular and discrete unit, often used in discussions of both physical objects and abstract concepts.

Theories About Intelligence

Various conceptual models proposed to explain the nature, components, development, and measurements of human intelligence.

Neural Processing

The method by which the nervous system receives, interprets, and responds to internal and external stimuli through the activity of neurons.