If the Monetary Policy Rule Is Given by R =

question 106

Multiple Choice

If the monetary policy rule is given by r = 1.0 + 0.5p, then 0.5 represents ________.

• A) the autonomous component of the real interest rate set by the central bank
• B) the responsiveness of the real interest rate to the inflation rate
• C) the nominal rate as described by the Taylor principle
• D) none of the above

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Definitions:

Primary Reinforcer

A stimulus that satisfies a basic biological need, such as food, water, or warmth, which inherently reinforces and promotes certain behaviors.

Operant Behavior

A concept in behavioral psychology referring to behavior that is controlled or influenced by its consequences, including rewards and punishments.

Primary Reinforcer

A stimulus that satisfies basic survival instincts such as food, water, and warmth, and doesn't require learning to become effective.

Conditioned Reinforcer

a stimulus that gains its reinforcing power through association with a primary reinforcer, used to increase the likelihood of a specific response in operant conditioning.