Refer to Figure 12.4 for the Following Question

question 91

Multiple Choice

Refer to Figure 12.4 for the following question.
Figure 12.4

-Refer to Figure 12.4. In this figure, if the economy in Year 1 is at point A and expected in Year 2 to be at point B, then the appropriate monetary policy by the Reserve Bank of Australia would be to:

• A)lower interest rates.
• B)raise interest rates.
• C)lower income taxes.
• D)raise income taxes.

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Definitions:

Perceived Homogeneity

The tendency to see members of an out-group as more similar to each other than they really are or than members of the in-group.

Stereotypes

Oversimplified generalized beliefs or expectations about the characteristics and behaviors of members of a group, often leading to prejudgment.

Behavioral Interpretation

The process of understanding actions and reactions through psychological principles.

Ultimate Attribution Error

The tendency to believe that bad actions by outgroup members occur because of their internal dispositions and good actions by them occur because of the situation, while believing the reverse for ingroup members.