In the Simple Deposit Expansion Model,a Decline in Checkable Deposits

question 125

Multiple Choice

In the simple deposit expansion model,a decline in checkable deposits of $500 when the required reserve ratio is equal to 20 percent implies that the Fed

• A)sold $250 in government bonds.
• B)sold $100 in government bonds.
• C)sold $50 in government bonds.
• D)purchased $100 in government bonds.

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Definitions:

Shaping

A behavior modification technique involving the reinforcement of closer approximations of a desired behavior until the exact behavior is achieved.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Skinner's Method

A behavioral approach developed by B.F. Skinner that emphasizes the role of reinforcement in shaping behavior through conditioning.

Obsessive-Compulsive Disorder

A mental health disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels driven to perform.