The Liquidity Trap Is the

question 94

Multiple Choice

The liquidity trap is the

• A) vertical portion of the demand curve for money.
• B) horizontal portion of the demand curve for money.
• C) vertical portion of the supply curve of money.
• D) horizontal portion of the supply curve of money.
• E) vertical portion of the demand curve for investment.

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention until it is paired with an unconditioned stimulus.

Biologically Significant

Pertaining to factors or impact of considerable importance for biological processes or survival.

Successive Approximations

A technique in behavior therapy and training that rewards behaviors that progressively get closer to the desired behavior.

Reinforcing

In the context of behavior, this term refers to the process of encouraging or establishing a pattern of behavior by providing a reward or consequence.