In Which Situation Would Policymakers Be Unable to Neutralize the Effect

question 33

Multiple Choice

In which situation would policymakers be unable to neutralize the effect on the economy?

• A) The federal government runs a deficit
• B) An increase in the price of oil
• C) Imports exceed exports
• D) Consumer confidence declines

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Definitions:

Affective Processes

Emotional components of the mind that influence moods, feelings, and attitudes, affecting behavior and decision-making.

Cognitive Processes

Pertains to the mental activities involved in acquiring knowledge and understanding through thought, experience, and the senses.

Arousal-Related Processes

The psychological and physiological mechanisms that regulate levels of arousal, affecting attention, motivation, and performance.

Cathartic Hypothesis

The notion that acting aggressively, or even just viewing aggressive material, reduces feelings of anger and aggression.