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Give an example of a monetary policy target.Explain why the Fed uses policy targets.
Normative Influence
The impact of social norms and expectations on an individual's behavior, often leading to conformity.
Informational Influence
A process by which individuals change their opinions or behaviors to align with those of a group or authority figure, based on the information or evidence presented.
Defensive Influence
The impact of psychological defense mechanisms in shaping an individual's behavior or response to certain stimuli or situations.
Self-fulfilling Prophecy
A prediction that directly or indirectly causes itself to become true due to the positive feedback between belief and behavior.
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