An Example of Nondiscretionary Policymaking Is

question 263

Multiple Choice

An example of nondiscretionary policymaking is

• A) a rule under which the Fed targets the inflation rate.
• B) expansionary fiscal policy.
• C) changes in the interest rate initiated by the Fed.
• D) a Congressional tax-rate cut aimed at boosting real GDP.

---

Definitions:

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and/or genetics.

Cognitive Factors

Pertains to the mental processes like perception, memory, and reasoning that influence our behavior and experiences.

Bandura

Albert Bandura, a psychologist known for his work on social learning theory and the concept of self-efficacy.

Negative Contrast

A psychological phenomenon where the response to a second stimulus is influenced negatively by a previously presented stronger stimulus.