Simplified Decision Rules Such as "Always Buy the Largest Size

question 28

Multiple Choice

Simplified decision rules such as "Always buy the largest size of the cheapest priced detergent" or "Only buy motor oil if the manufacturer is offering a rebate" are:

• A)the result of integration processes.
• B)called heuristics.
• C)formalized group norms.
• D)problem-solving consequences.
• E)stimulus-response benefits.

---

Definitions:

Money Supply

The total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a specific time.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand and not lend out, as set by the central bank.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve, either in its own vaults or with a central bank, and not lend out.