Which of the Following Is Likely in Response to the Policy

question 102

Multiple Choice

Which of the following is likely in response to the policy initiative described in the In the News article titled "Fed Cuts Deposit Reserve Requirements"?

• A)The unemployment rate will rise.
• B)The inflation rate will fall in the long run.
• C)Bank lending will increase.
• D)Home equity and home mortgage loans will dry up.

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Definitions:

Intrinsic Motivations

Internal drives to perform a task or engage in an activity purely because of the inherent satisfaction and enjoyment derived from doing it.

Extrinsic Motivations

Inspiration fueled by outside incentives, including financial gain, recognition, academic achievement, and commendation.

Overjustification Effect

A phenomenon where providing an external incentive for a behavior that is already internally rewarding can lead to a decrease in intrinsic motivation for that behavior.

Intrinsic Motivation

The drive to engage in an activity for its own sake, deriving pleasure and satisfaction from the activity itself rather than external rewards.