A Monetary Policy-Caused Reduction in the Overnight Lending Rate Will

question 105

Multiple Choice

A monetary policy-caused reduction in the overnight lending rate will:

• A)increase the prime interest rate.
• B)decrease the size of the monetary multiplier.
• C)increase the Bank of Canada rate.
• D)decrease the prime interest rate.

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Definitions:

Innate Releasing Mechanisms

Built-in neural and physiological systems in animals that trigger specific responses to particular stimuli, facilitating instinctual behavior.

Adaptive Responses

Reactions or changes made by organisms in response to changes in their environment or internal state that are beneficial for survival and reproduction.

Taste Aversion

A learned response to eating a particular food that results in an aversion to it, often following an illness or bad experience associated with the food.

Innate Releasing Mechanism

A hypothetical mechanism in the brain that responds to specific sensory stimuli by triggering a fixed action pattern or innate behavior.