Assume That There Is a 25 Percent Reserve Ratio and That

question 208

Multiple Choice

Assume that there is a 25 percent reserve ratio and that the Federal Reserve buys $4 billion worth of government securities. If the securities are purchased from the general public, this action has the potential to increase money supply by a maximum of

• A) $16 billion, but only by $14 billion if the securities are purchased directly from commercial banks.
• B) $14 billion, but by $16 billion if the securities are purchased directly from commercial banks.
• C) $16 billion, and also by $16 billion if the securities are purchased directly from commercial banks.
• D) $14 billion, and by $20 billion if the securities are purchased directly from commercial banks.

Recognize the limitations and side effects associated with SSRIs and other depression treatments.

Assess the efficacy and potential risks of electroconvulsive therapy (ECT) and other physical treatments.

Understand the role and limitations of psychosurgery in treating mental disorders.

Evaluate the effectiveness of psychotherapy and the importance of controlling for various factors in treatment studies.

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Definitions:

Unconditional Positive Regard

The acceptance of individuals as worthy and valuable regardless of their behavior, usually applied to parental acceptance of children.

Internal Locus

The belief that one’s actions are primarily guided by personal decisions and efforts rather than by external forces.

Internal Locus

A belief system where an individual attributes their successes and failures to their own actions and decisions.

Peak Communication

Communication characterized by complete openness and honest self-disclosure. It happens rarely.