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Definitions by _Krysta_~

Psychological Warfare

Psychological - Of, relating to, or arising from the mind or emotions

Warfare - Of, relating to, or arising from the mind or emotions

Therefore:
Psychological Warfare - Influencing or intended to influence the mind or emotions using tactics that affect mind over matter
The Government uses various techniques, such as propaganda and terror, to lower an enemy's morale. (Psychological Warfare)