Monetary Policy Does NOT Affect

question 3

Multiple Choice

Monetary policy does NOT affect:

• A) the level of income directly.
• B) interest rates.
• C) credit availability.
• D) inflation.

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Definitions:

Depth of Processing

A theory suggesting that the depth (shallow to deep) at which information is thought about affects the duration and strength of memory of that information.

Tip-of-the-Tongue

The phenomenon of failing to retrieve a word from memory, combined with partial recall and the feeling that retrieval is imminent.

Syllables

Units of organization for a sequence of speech sounds, typically containing a vowel sound with or without surrounding consonants, forming the building blocks of words.

Encoding-Specificity Principle

A principle stating that the effectiveness of memory retrieval is directly related to the similarity of the cues present at encoding and at retrieval.