The Hypothesis That People's Spending Decisions Are Based on All

question 111

Multiple Choice

The hypothesis that people's spending decisions are based on all available information,including the anticipated effects of government intervention,is known as

• A)The velocity of money.
• B)Rational expectations.
• C)Fiscal expectations.
• D)Rational responses.

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Definitions:

Reinforcing Outcomes

Consequences that increase the probability of a behavior being repeated by providing a reward or removing a negative stimulus.

Admirable

Deserving respect or approval for qualities such as integrity, bravery, or skill.

Observational Learning

A process of learning that occurs through observing the behavior of others, modeling that behavior, and then imitating it.

Ignition Key

A key used to activate the ignition system of a vehicle, enabling the engine to start.