All Else Constant, a Decrease in the Supply of Money

question 70

Multiple Choice

All else constant, a decrease in the supply of money will lead to

• A) an increase in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
• B) an increase in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.
• C) a decrease in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
• D) a decrease in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.

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Definitions:

Continuous Reinforcement

A form of learning in which a behavior is reinforced each time it is displayed, leading to a higher likelihood of the behavior occurring again.

Shaking A Rattle

An activity often used in developmental psychology studies to understand sensorimotor skills in infants.

Reinforcer

A stimulus or event that increases the likelihood of the repetition of the behavior that precedes it.

Intermittently Reinforced

A conditioning schedule where only some of the responses made are followed by reinforcement, known to produce behavior that is more resistant to extinction than continuous reinforcement.