If the Inflation Rate Is Rising,which One of the Following

question 24

Multiple Choice

If the inflation rate is rising,which one of the following would the Fed need to do to reduce the inflation rate?

• A) Lower margin requirements.
• B) Lower reserve requirements.
• C) Encourage more discount borrowing.
• D) Increase the federal funds rate.

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Definitions:

Extrinsic Motivation

The drive to perform an activity due to external rewards or pressures, rather than for the sake of enjoyment or interest in the task itself.

Higher-Order Needs

Needs that go beyond basic physical requirements, such as social, esteem, and self-actualization needs, as conceptualized in Maslow's hierarchy of needs.

Intrinsic Motivation

The drive to engage in activities for their intrinsic satisfaction rather than for some separable consequence.

Maslow's Hierarchy of Needs

A psychological theory that categorizes human needs into five levels, from basic physiological needs to self-actualization.