If a Central Bank Is Following a Policy of Fixing

question 77

Multiple Choice

If a central bank is following a policy of fixing an interest rate at a constant value, then, if the economy expands, the bank will respond by

• A) shifting the demand for money to the left.
• B) shifting the demand for money to the right.
• C) shifting the supply of money to the left.
• D) shifting the supply of money to the right.

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Definitions:

Token Economy

A behavior modification method that uses tokens as rewards for desired behaviors, which can be exchanged for privileges or goods.

Reinforcers

Stimuli that increase the likelihood of a behavior being repeated.

Tokens

Symbols or objects used to represent or signify something else, or in behavioral economics, a tangible reward used in token economy systems for reinforcing desired behaviors.

Crespi

Crespi is likely a reference to an individual or specific study within psychological or scientific research, but without additional context, it's unclear which Crespi or study is being referred to.