An Increase in Government Spending of $100 That Results in a Decrease

question 65

Multiple Choice

An increase in government spending of $100 that results in a decrease of private investment by $100 is an example of

• A) a balanced-budget change in fiscal policy.
• B) discretionary monetary policy and will increase equilibrium income by $100.
• C) the crowding-out effect and will leave equilibrium income unchanged.
• D) the circular flow model and will reduce equilibrium income by $100.
• E) the crowding-out effect and will increase equilibrium income by $100.

Understand the psychological research related to social influence, including key studies by researchers like Milgram and Asch.

Identify the social and psychological factors that can lead to resistance or susceptibility to social pressure.

Discuss how understanding social influence tactics can aid in resisting them and making informed decisions.

Recognize the normative and informational influences that lead to conformity.

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Definitions:

Visual Manner

A way or style in which something is visually presented or communicated.

Expert Testimony

An opinion offered by someone who is an authority on the subject under discussion.

Analogous Testimony

A statement made in comparison, showing similarity or parallelism with another situation.

Lay Testimony

An opinion or a description offered by a nonexpert who has firsthand experience.