If the Real Interest Rate Rises from 3 Percent a Year

question 77

Multiple Choice

If the real interest rate rises from 3 percent a year to 5 percent a year,

• A)there is a movement down along the supply of loanable funds curve.
• B)the supply of loanable funds curve shifts rightward.
• C)the nominal interest rate falls.
• D)the demand for loanable funds curve shifts rightward.
• E)there is a movement up along the demand for loanable funds curve.

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Definitions:

Reinforcement

In behaviorism, any event that strengthens or increases the likelihood of a behavior.

Fixed-Interval Schedules

A schedule of reinforcement where rewards are provided after a fixed amount of time has passed since the last reinforcement.

Variable-Interval Schedules

A reinforcement schedule in operant conditioning where responses are rewarded after an unpredictable amount of time has passed.

Extinction

The gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.