Assume That Total Deposits in the Banking System Are $200

question 47

Multiple Choice

Assume that total deposits in the banking system are $200 million. If the required reserve ratio is increased, then the money supply will:

• A) increase.
• B) decrease.
• C) not change because there was no change in deposits.
• D) not change because the required reserve ratio has no impact on the money supply.

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Definitions:

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.

Successive Approximations

A behavior training process where closer and closer approximations to a desired behavior are reinforced until the desired behavior is achieved.

Shaping

A method of conditioning by which successive approximations towards a desired behavior are reinforced, gradually guiding the behavior closer to the target.