-Which of the Following Statements Best Describes Figure

question 90

Multiple Choice

-Which of the following statements best describes Figure ?

• A)As the Fed increases reserves and with them the money supply, the interest rate tends to increase.
• B)As the Fed decreases available reserves and decreases the money supply, the interest rate tends to increase.
• C)As consumer incomes fall, consumers become more frugal. As a result they increase their demand for money and the interest rate increases.
• D)An increase in household incomes is likely to increase the demand for money. As money demand increases, the interest rate rises.

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Definitions:

Socialization

The lifelong process through which people learn the norms, values, behaviors, and social skills appropriate to their society.

Cultural Standards

The accepted values, norms, and practices that guide behavior and expectations within a specific culture or society.

Superego

A component of Freud's psychoanalytic theory, representing the moral conscience that incorporates societal norms and values.

Ego

The part of the mind in psychoanalytic theory that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.