When the Fed Increases the Interest Rate

question 55

Multiple Choice

When the Fed increases the interest rate,

• A)money supply is unaffected.
• B)money demand is unaffected.
• C)money demand shifts left, and money supply shifts right.
• D)money demand shifts left, and money supply is unaffected.
• E)money demand and money supply shift left.

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Definitions:

Scapegoating

A psychological or social process where individuals or groups assign blame to others for problems or negative outcomes.

Outgroup

An outgroup is a group of people who do not belong to or are excluded from one's own group, often leading to prejudice or discrimination against them.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can impair their performance in certain tasks.

Negative Attitude

A general disposition to evaluate people, objects, or situations unfavorably or with pessimism.