Suppose That in 2014 the Bank of Canada Announced a Policy

question 109

Multiple Choice

Suppose that in 2014 the Bank of Canada announced a policy of rapid growth in the money supply, but then put the brakes on money expansion without any announcement.And suppose in 2015 officials at the Bank of Canada announce again that an expansion is planned.What is the most likely result?  

• A) People will believe the second announcement because the conditions that created a need for the expansion are probably still in effect. 
• B) Even though the Bank of Canada failed to implement the expansion after the first announcement, people will believe the second announcement because they will believe the Bank of Canada still plans to implement the policy. 
• C) People will NOT believe the second announcement because they will believe that the conditions that created a need for the expansion must have changed since the first announcement. 
• D) People will have more uncertainty about the Bank of Canada following through on the policies it announces.

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Definitions:

Cross-modal Transfer

The ability to transfer information or learning from one sensory modality to another, enhancing perceptual and cognitive skills.

Attention Recovery

The process by which an individual's cognitive focus and alertness are restored after periods of stress or mental fatigue, often through engagement with restorative environments or activities.

Violation-of-expectations

A research method used in developmental psychology to study infants' understanding of the world by observing their reactions to unexpected events.

Perceptual Awareness

The ability to become aware of one's environment and internal states through sensory input, such as sight, sound, and touch.