Milton Friedman Contends That It Is Entirely Possible That When

question 35

Multiple Choice

Milton Friedman contends that it is entirely possible that when the money supply rises,interest rates may ________ if the ________ effect is more than offset by changes in income,the price level,and expected inflation.

• A) fall; liquidity
• B) fall; risk
• C) rise; liquidity
• D) rise; risk

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Definitions:

Community

A group of people living in the same place or having a particular characteristic in common.

Biases

Regular patterns of departure from normalcy or logical thinking in making judgments, leading to conclusions about others and circumstances in a way that lacks logic.

Attribution Process

The cognitive process by which individuals infer the causes of their own and others' behavior, attributing it to either internal dispositions or external situations.

Workplace Stereotypes

Preconceived and oversimplified beliefs about certain groups of people within a professional environment, often based on gender, age, race, or occupation.