Suppose That the Reserve Requirement Is 10 Percent and Bob

question 121

Multiple Choice

Suppose that the reserve requirement is 10 percent and Bob writes a check to you for $100. If you deposit the check to your checking account, then:

• A) the money supply will not change.
• B) the money supply can increase by as much as $1000.
• C) the money supply will decrease by exactly $100.
• D) the money supply can decrease by as much as $1000.

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Definitions:

Fixed-interval

A type of schedule in operant conditioning where a response is rewarded only after a specified amount of time has elapsed, leading to a pattern of response.

Variable-interval

Variable-interval describes a schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in operant conditioning.

Classical Conditioning

A method of learning in which two stimuli are consistently associated; the response initially produced by the second stimulus ultimately becomes triggered by just the first stimulus alone.

Extinction

The process through which the conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the cessation of the conditioned response.