Some Constituents Gives Legislators More Flexibility and Accept the Premise

question 3

Multiple Choice

Some constituents gives legislators more flexibility and accept the premise that many issues are complicated. These constituents tend to stress problem solving over politics. This is known as the __________ approach.

• A) Ideological
• B) Social
• C) Goldwater
• D) Pragmatic

---

Definitions:

Money Multiplier

The ratio of the amount of deposits created by banks to the amount of the central bank's monetary base that has been injected into the economy.

100-percent-reserve Banking

A banking system in which banks keep the full amount of their depositors' funds in reserve, meaning they do not loan out any of the deposits but instead hold 100% of deposited money.

Money Supply

The total amount of currency and monetary assets within an economy at a specific time.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, used to control the money supply.