A Liquid Trap Can Be Avoided If the Central Bank

question 243

Multiple Choice

A liquid trap can be avoided if the central bank:

• A)pays interest on reserves.
• B)charges banks fees for keeping reserves.
• C)pays interest on bank deposits at banks.
• D)charges banks fees for making loans.

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Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response when the conditioned stimulus is presented without the unconditioned stimulus.

Conditioned Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer.

Variable-Ratio Reinforcement Schedule

A reinforcement strategy where a response is reinforced after an unpredictable number of responses, which typically leads to high and steady response rates.

Principle of "Sameness"

This term refers to the cognitive process of recognizing and treating different stimuli as equivalent or having the same meaning or category.