Suppose Interest Rates Are Kept Very Low for a Long

question 101

Multiple Choice

Suppose interest rates are kept very low for a long time such that there is a spike in the amount of lending. Everything else held constant,this could cause ________ bubble.

• A)an irrational exuberance
• B)a credit-driven
• C)a stock
• D)a debt-driven

---

Definitions:

Skinner

B.F. Skinner, an influential American psychologist known for his work on behaviorism and for developing the theory of operant conditioning.

Parental Pampering

Overindulgent behavior by parents that can lead to children developing a sense of entitlement or lack of self-discipline.

Individual Psychology

A psychological approach focusing on a person's unique, individual nature and their pursuit of goals for self-improvement and community welfare.

Superego

In psychoanalytic theory, the part of the personality that represents internalized ideals and provides standards for judgment.