Suppose There Is a Decrease in the Confidence That Workers

question 33

Multiple Choice

Suppose there is a decrease in the confidence that workers have in their future employment and income. This will cause

• A)a decrease in borrowing which will decrease interest rates.
• B)a decrease in saving which will decrease interest rates.
• C)a decrease in borrowing which will increase interest rates.
• D)a decrease in saving which will increase interest rates.

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Definitions:

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over others, leading to prejudice and discrimination.

Prejudice

A preconceived opinion or bias, often negative, towards people, groups, or subjects without factual justification or knowledge.

Catharsis

A psychological concept that suggests expressing or experiencing strong emotions can lead to a state of psychological relief or liberation.

Aggression

Aggression is behavior aimed at causing harm or pain to others, which can be physical or verbal.