Figure 30-3

question 91

Multiple Choice

Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
-Refer to Figure 30-3. At the end of 2009 the relevant money-supply curve was the one labeled MS1. At the end of 2010 the relevant money-supply curve was the one labeled MS2. Assuming the economy is always in equilibrium, what was the economy's approximate inflation rate for 2010?

• A) -33 percent
• B) 17 percent
• C) 50 percent
• D) 67 percent

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Definitions:

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.

Medium Reward

Denotes a reward that offers a moderate level of satisfaction or incentive.