The key region of the brain for principal decision making is the:
A. insular cortex.
B. amygdala.
C. Nucleus Accumbens (NAcc).
D. prefrontal cortex (PFC).
Answer: D
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Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation. b. both the borrower and the lender lose from inflation. c. the borrower benefits from inflation, while the lender loses from inflation. d. the lender benefits from inflation, while the borrower loses from inflation.
Competition in U.S. banking has been increased by
a. the expansion of interstate banking. b. the expansion of foreign bank branches into the United States. c. the movement of brokerage houses and large corporations into traditional banking activities. d. All of these.
The rate of interest is the price at which money is borrowed and loaned.
Answer the following statement true (T) or false (F)
If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point:
A. A B. It is likely to be unaffected and stay at point B C. C D. D