The Keynesian Theory of Money Demand Emphasizes the Importance of

question 29

Multiple Choice

The Keynesian theory of money demand emphasizes the importance of

• A)a constant velocity.
• B)irrational behavior on the part of some economic agents.
• C)interest rates on the demand for money.
• D)expectations.

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Definitions:

Classical Conditioning

Gaining understanding through linking an environmental stimulus with a stimulus that occurs inherently.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, eventually triggers a conditioned response.

Classical Conditioning

A conditioning technique where two stimuli are repeatedly connected; the reaction, at first prompted by the second stimulus, ultimately becomes prompted by only the first stimulus.

Unconditioned Stimulus (US)

A stimulus that naturally triggers a response without the need for prior learning.