If the Money Multiplier Is Approximated to Be 4, Then

question 141

Multiple Choice

If the money multiplier is approximated to be 4, then the reserve ratio must be:

• A) 25 percent.
• B) 2.5 percent.
• C) 5 percent.
• D) 4 percent.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, leading to tension and the motivation to reduce the dissonance by changing beliefs or behaviors.

Festinger

Leon Festinger, a social psychologist known for his theory of cognitive dissonance, which describes the discomfort felt when holding conflicting ideas or beliefs.

Media Influence

The effect that media, such as television, internet, and advertising, have on the attitudes, behaviors, and values of the people who are exposed to it.

Information

A set of data or details about a specific topic that is conveyed or represented by someone or something.