During World War II, the Fed Accommodated the War Effort

question 102

Multiple Choice

During World War II, the Fed accommodated the war effort by:

• A) significantly curtailing credit in the economy.
• B) keeping bond prices high and interest rates low.
• C) selling any Treasury securities the public did not purchase.
• D) curtailing credit and keeping bond prices high.

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Definitions:

Group Pressure

The psychological influence exerted by a group on individual members to align their behavior or beliefs with group norms.

Asch

Refers to Solomon Asch, known for his research on conformity, including his famous experiments that demonstrated the power of social pressure.

Milgram

Stanley Milgram was a psychologist best known for his controversial experiment on obedience to authority figures, conducted in the 1960s.

Compliance

The act of conforming to a request, command, or set of rules, often analyzed in social psychology to understand obedience and group behavior.