If There Is Instability in the Demand for Commodities

question 141

Multiple Choice

If there is instability in the demand for commodities,

• A)a monetary policy of fixed interest rates will perform better than a policy of holding the real money supply fixed.
• B)a countercyclical money-supply policy will cause large swings in interest rates.
• C)a fixed money supply policy will perform better than countercyclical changes in money supply.
• D)a fixed money supply policy will stabilize interest rates.

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Definitions:

Double-masked Design

A study design in which neither the participants nor the researchers know who belongs to the control group and who belongs to the experimental group, minimizing bias.

Experimenter Expectancies

The potential influence that a researcher's beliefs, hopes, or biases can have on the outcome of an experiment, often impacting the behavior being studied.

Rosenthal Effect

The phenomenon in which the higher expectations placed upon individuals either by themselves or others lead to better performance; also known as the Pygmalion effect.

Quasi-experimental Designs

Research methods that aim to evaluate interventions without using random assignment, often by comparing groups that naturally exist.