In Order for the Long- Run Neutrality of Money to Hold

question 5

Multiple Choice

In order for the long- run neutrality of money to hold, an increase in money supply must cause:

• A) the money demand curve to shift upwards enough to raise the interest rate.
• B) the money demand curve to shift down to keep the interest rate constant.
• C) the money demand curve to shift downwards enough to lower the interest rate.
• D) the money demand curve to shift up to keep the interest rate constant.

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Definitions:

Edible Roots

Parts of plants that grow underground and can be consumed as food, such as carrots, beets, and potatoes.

Higher-Order Conditioning

A process in classical conditioning by which a conditioned stimulus is paired with a new neutral stimulus, creating a second (often weaker) conditioned stimulus.

Counterconditioning

A behavior therapy technique that involves replacing an unwanted response to a stimulus with a desired response.

Shaping

A method of positive reinforcement in operant conditioning that rewards closer and closer approximations of the desired behavior.