As You Flip Through the Television Channels, You Come Across

question 404

Multiple Choice

As you flip through the television channels, you come across the "Psychic Circle," which advertises "psychics" who use "scientifically proven methods" to see the future. This is an example of:

• A) empirical evidence.
• B) applied critical thinking.
• C) the practice effect.
• D) a pseudoscientific claim.

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Definitions:

Reserve Requirement

The minimum amount of deposits that a bank must hold in reserve and not lend out, which is set by the central bank as a means to control the money supply.

Open-Market Sales

Transactions where central banks sell securities in the open market to control the supply of money.

Treasury Securities

Debt instruments issued by the government to finance its expenditures, including bills, notes, and bonds.

Money Supply

The sum total of economic assets in monetary form at a specific time.