Everything Else Held Constant,in the Market for Reserves,increases in the Discount

question 89

Multiple Choice

Everything else held constant,in the market for reserves,increases in the discount rate affect the federal funds rate

• A)when the funds rate is below the discount rate.
• B)when the funds rate equals the discount rate.
• C)when the demand for federal funds intersects the vertical section of the reserve supply curve.
• D)when the demand for federal funds equals zero.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.