Which of the Following Factors Would Be Most Likely to Lead

question 45

Multiple Choice

Which of the following factors would be most likely to lead to an increase in nominal interest rates?

• A) Households reduce their consumption and increase their savings.
• B) A new technology like the Internet has just been introduced,and it increases investment opportunities.
• C) There is a decrease in expected inflation.
• D) The economy falls into a recession.
• E) The Federal Reserve decides to try to stimulate the economy.

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Definitions:

Learning Approach

The theoretical view that focuses on how behavior changes as a function of rewards and punishments; also called behaviorism.

Rewards And Punishment

A concept in behaviorism where positive outcomes are used to reinforce desired behavior, and negative outcomes are used to deter undesirable behavior.

Personality Processes

The mental activities of personality, including perception, thought, motivation, and emotion.

Cognitive Approach

A psychological perspective that focuses on mental processes such as perception, memory, and problem-solving.