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Pavlov reported that repeatedly pairing a mild acid and a particular odor, in that order, failed to
produce a CR. The experimenter then got a CR by presenting an odor followed by the mild acid. This
time, however, he used a different odor. Explain why he used a different odor.
M2
A money aggregate consisting of M1 plus savings deposits, small-denomination time deposits, money market mutual funds, and other miscellaneous near-monies.
Near-Monies
Assets that are easily convertible into cash but are not cash themselves, such as savings accounts and time deposits.
Time Deposits
Deposits that earn a fixed interest rate if held for the specified period, which can range from several months to several years; also called certificates of deposit.
Money Market Mutual Funds
Investment funds that invest in short-term debt securities, offering investors a high degree of liquidity and typically low risk.
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