All of the Following Are Associated with Contagious Runs at DIs

question 35

Multiple Choice

All of the following are associated with contagious runs at DIs EXCEPT

• A)liability holders not distinguishing between good and bad FIs.
• B)liability holders seeking to quickly turn their liabilities into cash or safe securities.
• C)a contractionary effect on the supply of credit.
• D)negative social welfare effects.
• E)an expansionary effect on the regional money supply.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that automatically triggers a response without any need for prior learning.

Conditioned Stimulus

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

Unconditioned Reinforcer

A stimulus that naturally and automatically triggers a response without any need for learning, such as food for a hungry animal.