This desire to reduce internal tension is a crucial aspect of the drive-reduction theory.
<h3 /><h3>What is drive-reduction theory?</h3>
It corresponds to a psychological theory developed by Clark Hull, who believed that individuals are motivated to meet their basic needs, which are psychological and physiological needs.
Therefore, a behavior to reduce the unpleasant sensation of cold would be a physiological motivation proposed by the drive-reduction theory.
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Answer:
The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.
This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).
The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.
This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.
When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.
When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.
Explanation:
The lack of competition would mean that our economy would lower. Democracy is a system of government where the citizens exercise power by voting. In a direct democracy, the citizens as a whole form a governing body and vote directly on each issue. So, this could lower oting on one thing in media to a totally diffrent thing that has more comptetion to it.
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