The Level of GDP, Ceteris Paribus, Will Tend to Increase

question 125

Multiple Choice

The level of GDP, ceteris paribus, will tend to increase when:

• A) Reserve requirements are increased
• B) There is an increase in the discount rate
• C) The Federal Reserve buys government securities in the open market
• D) The Federal Reserve sells government securities in the open market

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Definitions:

Conservation of Number

A cognitive ability, identified by Piaget, that allows a child to understand that the quantity of an item remains the same despite changes in its shape or arrangement.

Failure to Conserve

A difficulty or inability to recognize that certain properties of objects or substances remain unchanged despite changes in their form or arrangement, typically seen in children before they reach the concrete operational stage of cognitive development.

Mental Operation

Cognitive processes that allow an individual to reason, perform abstract thinking, and solve problems.

Identity

The qualities, beliefs, personality, looks, and/or expressions that make a person or group.