After a Major Earthquake, the Rocks May Continue to Adjust

question 54

Multiple Choice

After a major earthquake, the rocks may continue to adjust to their new positions, causing additional vibrations called

• A) aftershocks.
• B) reverberations.
• C) echoes.
• D) none of the above.

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Definitions:

Wealth Effect

The phenomenon where consumers spend more as the value of their assets, such as real estate or stocks, increases.

Interest-Rate Effect

The impact that changing interest rates have on consumer spending and capital investment in the economy.

Exchange-Rate Effect

The impact of a change in the relative value of a currency on the economy, particularly on foreign exchange rates and international trade.

Monetary Policy

The process by which a central authority, typically a country's central bank, controls the supply of money in the economy, often targeting an inflation rate or interest rate to ensure economic stability and growth.