In 1979- 80, the Bank of Canada Contracted the Rate

question 74

Multiple Choice

In 1979- 80, the Bank of Canada contracted the rate of growth of the money supply in an attempt to reduce inflation. One problem with this policy was that

• A)the demand for money dropped at the same time, causing the policy to be more expansionary than necessary, leading to further inflation.
• B)it proved completely ineffective in influencing either real GDP or the price level.
• C)an unexpected increase in the demand for money caused the policy to be more contractionary than necessary, leading to a recession.
• D)an unexpected increase in the demand for money caused the policy to be more expansionary than necessary, leading to further inflation.
• E)the demand for money dropped at the same time, causing the policy to be more contractionary than necessary, leading to an undesirable boom.

Recognize the influence of television and media on behavior through modeling.

Identify key figures and their contributions to the understanding of learning and behavior.

Differentiate between various learning theories (e.g., classical conditioning, observational learning, latent learning, shaping).

Comprehend the implications of inconsistency between verbal statements and actions on observed behavior.

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Definitions:

Expected Payoffs

The forecasted return on an investment or decision, taken as the weighted average of all possible outcomes, considering their probabilities.

Mixed Strategy Equilibrium

Mixed Strategy Equilibrium is a concept in game theory where each player in a game randomizes over possible moves according to a specific probability distribution, and no player can benefit by changing their strategy unilaterally.

Pure Strategy Equilibria

A situation in game theory where all players have chosen a strategy and have no incentive to change, leading to a stable outcome.

Maximin Strategy

A decision rule used in game theory and decision making to maximize the minimum possible payoff, focusing on minimizing losses in the worst-case scenario.