In 2005 and 2006, Because of Fears of Inflation, the Fed

question 23

Multiple Choice

In 2005 and 2006, because of fears of inflation, the Fed:

• A)​increased interest rates which lead to higher monthly payments on fixed rate mortgages.
• B)​increased interest rates which lead to higher monthly payments on adjustable rate mortgages.
• C)​decreased interest rates which lead to higher monthly payments on fixed rate mortgages.
• D)​decreased interest rates which lead to higher monthly payments on adjustable rate mortgages.

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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.