Refer to Scenario 13

question 5

Multiple Choice

Refer to Scenario 13.1.What is the change in investment spending following the open market operation by the Fed?

• A)-$20 billion
• B)-$10 billion
• C)+$20 billion
• D)+$30 billion
• E)+$50 billion

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Definitions:

Egocentrism

The inability to understand or assume any perspective other than one's own.

Habituation Technique

A method used to reduce reactions to repeated stimuli by exposing the subject to the stimulus over time until the response diminishes.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled or sensed in any way).

Jean Piaget

A Swiss psychologist known for his pioneering work in child development and his theory of cognitive development.