In Response to the Sharp Decline in Stock Prices in October

question 72

Multiple Choice

In response to the sharp decline in stock prices in October 1987,the Federal Reserve

• A)increased interest rates,and the economy avoided a recession.
• B)increased interest rates,but the economy was unable to avoid a recession.
• C)decreased interest rates,and the economy avoided a recession.
• D)decreased interest rates,but the economy was unable to avoid a recession.

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Definitions:

Informational Influence

The process of using others as a source of information about the world.

Deindividuation

A psychological state characterized by reduced self-awareness and diminished social identity, often leading to uninhibited and sometimes antisocial behavior.

Openness to New Experiences

A personality trait characterized by a willingness to try new things, explore unfamiliar places, and engage in different activities or ideas.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.