"Animal Spirits" Refers to

question 65

Multiple Choice

"Animal spirits" refers to

• A)the stubborn refusal of many economic decision-makers to use rational expectations.
• B)movements in investment that cannot be explained by changes in current variables.
• C)the often-observed Fed refusal to cooperate with the government in setting its monetary policy.
• D)the impact of tax-evasion on the budget deficit.
• E) an exotic alcoholic drink favored by Wall Street traders.

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Definitions:

Placebo Effect

The phenomenon in which the expectations of the participants in a study can influence their behavior.

Subject Bias

Preconceived notions or attitudes exhibited by subjects in a study, potentially affecting the validity of the research or experiment outcomes.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to investigate its effect on the dependent variable.

Treadmill

An exercise machine with a moving belt on which one can walk or run while staying in the same place.