For This Question,assume That the Fed Is Expected to Respond

question 59

Multiple Choice

For this question,assume that the Fed is expected to respond to any event by keeping the interest rate constant (i.e.,equal to its initial level) .An unexpected tax cut will cause

• A)stock prices to fall.
• B)stock prices to rise.
• C)no change in stock prices.
• D)an ambiguous effect on stock prices.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Personality

Personality consists of the unique patterns of thoughts, feelings, and behaviors that make up an individual’s character and distinguish one person from another.

Allport

Gordon Allport, a pioneering psychologist known for his work on personality traits and the concept of the individual.

Behaviorism

A branch of psychology that focuses on observable behaviors and the ways they're learned, ignoring internal thought processes.