Open Market Operations

question 31

Multiple Choice

Open market operations

• A)lack flexibility because only very small purchases or sales may be carried out in any given month.
• B)lack flexibility because open market purchases cannot easily be offset by subsequent open market sales.
• C)are more flexible than other policy tools.
• D)may be carried out only on the third Friday of each month.

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Definitions:

Skinner Box

An experimental apparatus used in the behavioral study of animals, named after B.F. Skinner, to study operant conditioning.

Shaping

A method of behavior training in which successive approximations toward a desired behavior are reinforced.

Premack Principle

A principle stating that a more desired activity can serve as a reinforcer for a less desired activity.

Behavior Modification

A therapeutic approach that seeks to change potentially self-destructive or unhealthy behaviors through the systematic application of the principles of conditioning.