Government Actions That Were Taken in Order to Stimulate the Economy

question 59

Multiple Choice

Government actions that were taken in order to stimulate the economy during the Great Recession of 2007-09 included the following, except:

• A) A significant reduction of interest rates to nearly zero
• B) A large increase in transfer payments
• C) An increase in the deficit-spending of the government
• D) A sharp increase in the natural rate of unemployment

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.