An Increase in Interest Rate by the Federal Reserve Will

question 31

Multiple Choice

An increase in interest rate by the Federal Reserve will affect only real interest rates because:

• A)inflation is sticky in the short run.
• B)the relationship between money growth and inflation does not necessarily hold in the short run.
• C)prices are flexible in the short and long runs.
• D)contracts apply only in the very short run.
• E)a and b are correct.

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Definitions:

Assertiveness

A communication style characterized by confidence and directness in expressing one's opinions, needs, and desires, while respecting others.

Ingratiation

A psychological technique aimed at making oneself more likable to others through flattery or other forms of manipulation.

Impression Management

The process through which individuals attempt to control the perceptions others have of them, usually to appear more favorable or competent.

Upward Influence

refers to the ability of lower-level employees to affect the decisions, actions, and perspectives of their higher-up managers or leaders.