In a Liquidity Trap

question 91

Multiple Choice

In a liquidity trap:

• A) fiscal policy becomes ineffective because of the high budget deficit.
• B) monetary policy becomes ineffective because the nominal interest rate is close to the zero bound.
• C) the aggregate price level becomes downwardly sticky.
• D) any increase in government spending drives out planned investment spending.

Understand the doctrine of respondeat superior and its application to torts committed in the course of employment.

Recognize scenarios where agency relationships are terminated and the effect of termination methods.

Identify the principles of vicarious liability, especially in cases involving intentional torts and criminal acts.

Distinguish between express, implied, apparent, and incidental authority in agency relationships.

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Definitions:

Extrinsic Rewards

Benefits and incentives provided from an external source, used to motivate behavior that might not occur otherwise.

Intrinsic Rewards

Internal or psychological rewards that are derived from the activity itself rather than from external factors.

Extrinsic Reinforcers

Reinforcers that are not inherently related to the activity being reinforced.

Inherently Related

Describes things that are naturally or fundamentally connected or linked to each other.