The Effectiveness of Monetary Policy Is Influenced by

question 94

Multiple Choice

The effectiveness of monetary policy is influenced by

• A)The time it takes for lower interest rates to make investment spending more profitable.
• B)The willingness of Congress to implement it.
• C)How responsive the money supply is to changes in taxes.
• D)Reports by the Congressional Budget Office.

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Definitions:

Neutral Stimulus

A neutral stimulus is something in the environment that initially does not elicit any intrinsic response until it is paired with an unconditioned stimulus.

Conditioned Stimulus

An initially neutral signal that, once it is linked with a natural stimulus, eventually elicits a learned response.

Pavlov

Ivan Pavlov, a Russian physiologist known primarily for his work in classical conditioning, particularly experiments with dogs leading to the concept of the conditioned reflex.

Neutral Stimulus (NS)

In classical conditioning, a stimulus that elicits no response before conditioning.