Which of the Following Reduced the Demand Stimulus Effects of the Fed's

question 158

Multiple Choice

Which of the following reduced the demand stimulus effects of the Fed's low interest rate policy pursued during, and after, the financial crisis of 2008-2009?

• A) Declining stock prices during 2010-2012.
• B) A reduction in the velocity of money.
• C) An increase in earnings derived from money market accounts, saving deposits, and similar saving instruments.
• D) A sharp increase in the rate of inflation during 2009-2012.

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Definitions:

Gordon Allport

An influential American psychologist known for his extensive research in personality and the psychology of prejudice.

Attitudes

Global evaluations toward some object or issue

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a social context.

Milgram's Studies

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.