What Are the Two Forms of Social Loafing

question 15

Multiple Choice

What are the two forms of social loafing?

• A)The free loader effect and the free rider effect
• B)The free loader effect and the sucker effect
• C)The free rider effect and the sucker effect
• D)The free rider effect and the solo effect
• E)The free rider effect and the loafer effect

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Definitions:

Monetary Multiplier

The ratio of the change in the money supply to the change in reserves, indicating the potential increase in money supply through the banking system.

Legal Reserve Ratio

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out, often set by central banks.

Reserve Requirement

A regulation that sets the minimum reserves each bank must hold to customer deposits and notes, intended to ensure bank liquidity and financial stability.

Excess Reserves

Funds held by banks over and above the legally mandated requirements to back deposits.