Groups Are UNLIKELY to Develop Groupthink If the ____

question 51

Multiple Choice

Groups are UNLIKELY to develop groupthink if the ____.

• A)group members are extremely similar to one another
• B)group has a strong, directive leader
• C)group members lack cohesion
• D)group is isolated from other people

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Definitions:

Loanable Funds Theory

The Loanable Funds Theory is an economic principle that posits the market interest rates are determined by the supply and demand for loans, where saving provides the supply and investments demand the funds.

Equilibrium Interest Rate

The interest rate at which the quantity of loanable funds demanded equals the quantity of loanable funds supplied, resulting in a balance between savings and investment.

Expected Rates

The anticipated rates of return, interest, or growth in various contexts such as finance, investment, and economic forecasting.

Loanable Funds

The money available for borrowing in the financial markets, derived from savings and influenced by interest rates.