The US Government Is Continually Adding Security Features to Its Paper

question 82

Multiple Choice

The U.S. government is continually adding security features to its paper currency to help make counterfeit money easier to detect. If counterfeit currency remained undetected, a vast increase in the supply of counterfeit U.S. currency would

• A)decrease aggregate demand in the short run.
• B)lead to inflation.
• C)reduce the amount of M1.
• D)lower the nominal income of the average U.S. worker.

---

Definitions:

Cultural Bias

The tendency to interpret or judge human behaviors, cultures, or phenomena based on one's own cultural standards.

Deliberate Deception

The intentional act of misleading or tricking someone by providing false information or withholding the truth.

Social Desirability Bias

The tendency of survey respondents to answer questions in a manner that will be viewed favorably by others, often leading to overreporting of positive behaviors and underreporting of negative behaviors.

Response Sets

Response sets refer to a pattern of responding to questions in a particular way irrespective of the content, often leading to biased outcomes in surveys or psychological tests.