Monetary Policy Tools Include

question 27

Multiple Choice

Monetary policy tools include:

• A)Income taxes and the discount rate.
• B)Open market operations and government spending.
• C)The reserve ratio and the discount rate.

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Definitions:

Behavior Modification

A treatment approach, based on the principles of operant conditioning, that replaces undesirable behaviors with more desirable ones through positive or negative reinforcement.

Behaviorism

A scientific approach to understanding human and animal behavior, focusing on observable and measurable behaviors rather than mental processes.

Reinforcement

In behavior psychology, a stimulus which increases the likelihood of a preceding behavior to occur again.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which behaviors are learned, dismissing thoughts and emotions as causes for behavior.