A Change in the Monetary Base Leads to a Larger

question 103

Multiple Choice

A change in the monetary base leads to a larger change in the money supply since

• A) reserves earn interest for the bank.
• B) banks lend excess reserves, which become deposits.
• C) a change in the monetary base changes the likelihood that households hold cash.
• D) none of the above.

Understand the psychological factors that contribute to obedience and disobedience in social psychology experiments.

Identify the influence of attractiveness on brain reward systems and how it affects person perception.

Recognize the role of attributional biases in interpreting other's behaviors and circumstances.

Understand the effects of stereotypes, prejudice, and out-group homogeneity on social perception and interaction.

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Definitions:

Elaboration Likelihood Model

A theory explaining how people process persuasive messages, differentiating between a central route of careful scrutiny and a peripheral route of cues external to the message.

Personal Relevance Theory

The hypothesis that people pay more attention to and are more likely to remember information that they find personally relevant or meaningful.

Psychological Reactance

A behavioral response to perceived threats to one’s autonomy, often resulting in opposition to being controlled.

Boomerang Effect

A situation where the opposite of the intended effect occurs, especially in a social or psychological context, such as when trying to persuade results in resistance.