Figure 10-6 -Refer to Figure 10-6. If the Fed Wants to Encourage

question 164

Multiple Choice

Figure 10-6
-Refer to Figure 10-6. If the Fed wants to encourage investment and expand the economy, it would conduct

• A) an expansionary monetary policy such as an open market purchase. The results of such a policy are represented in Panel (a).
• B) a contractionary monetary policy such as an open market sale. The results of such a policy are represented in Panel (b).
• C) an expansionary monetary policy such as an open market sale. The results of such a policy are represented in Panel (a).
• D) a contractionary monetary policy such as an open market purchase. The results of such a policy are represented in Panel (a).

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Definitions:

Extinction

The process of eliminating a behavior by withholding reinforcement.

Successive Approximation

An explanation for the acquisition of complex behavior. Behavior such as learning to speak will be reinforced only as it comes to approximate or approach the final desired behavior.

Variable-Ratio Reinforcement

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, leading to high and steady response rates.

Pavlov

Refers to Ivan Pavlov, a Russian physiologist best known for his research in classical conditioning with dogs.