Which of the following refers to the ego's protective methods of reducing anxiety by distorting reality?

The correct answer is related to the concept of defense mechanisms, which are psychological strategies employed by the ego to manage anxiety and conflict. Defense mechanisms operate unconsciously and help to mitigate feelings of anxiety or distress by distorting reality in various ways.

For example, mechanisms such as denial, suppression, and rationalization allow individuals to cope with uncomfortable thoughts or feelings by altering the perception of reality or using rational explanations to justify certain behaviors or emotions. These methods serve as a protective layer for the ego, helping individuals maintain psychological stability when faced with stressors or threats.

In contrast, dynamic equilibrium refers to a state of balance and stability within the personality, and does not specifically address the processes used to manage anxiety. Repression is indeed a specific type of defense mechanism where distressing thoughts and feelings are pushed out of conscious awareness, but it is just one example among many. Projection involves attributing one's own unacceptable thoughts or feelings onto others, which is also a type of defense mechanism but does not encompass the broader category that includes various other methods of reducing anxiety.