What Do Many Economists Think Contributed to the Greater Than

question 128

Multiple Choice

What do many economists think contributed to the greater than 13% inflation rates experienced by the United States in the 1980s?

• A) The Fed was inflexible in its rule of 3% growth.
• B) The Fed did not do enough to increase money supply.
• C) The Fed overstimulated the economy with too much money in the 1970s.
• D) The Fed did not react to the oil shocks of the 1970s.

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Definitions:

Terman's Formula

A method developed by Lewis Terman for estimating intelligence quotient (IQ) based on the ratio of mental age to chronological age, multiplied by 100.

IQ Scores

Numerical measures of a person's intelligence as compared to the average performance of individuals in the same age group.

Terman's Formula

A method for calculating intelligence quotient (IQ) developed by Lewis Terman, using the ratio of mental age to chronological age.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of a person of the same chronological age.