A Reduction in the Required Reserve Ratio Would Cause the Interest

question 189

Multiple Choice

A reduction in the required reserve ratio would cause the interest rates to

• A)increase only if the level of investment is low relative to historic levels.
• B)decrease.
• C)increase.
• D)increase only if the level of unemployment is high.
• E)remain the same.

---

Definitions:

Attitude Change

This is the process by which an individual's attitudes are influenced and modified through various means, such as persuasion, social influence, or personal experience.

Mindlessness

The act of agreeing to a request without giving it thought. A small request is likely to be agreed to, even if a spurious reason is provided.

Acquiescent Response

A tendency to agree with or accept something passively, rather than expressing one's own opinion or dissent.

Elaboration-Likelihood Model

A theory suggesting two primary pathways (central and peripheral) that influence the ability of a message to persuade.