Suppose Policy Makers Implement an Unexpected Monetary Expansion

question 25

Multiple Choice

Suppose policy makers implement an unexpected monetary expansion. Which of the following will occur as a result?

• A) A decrease in stock prices.
• B) An ambiguous effect on stock prices.
• C) An increase in stock prices.
• D) Stock prices increase only if goods prices increase.
• E) No change in stock prices.

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Definitions:

Unpleasant Stimuli

External or internal factors that are perceivable and can cause discomfort or negativity.

Aversive Stimuli

An unpleasant or harmful object, event, or situation that causes a decrease in the behavior it follows.

Behavior Modification

A technique aimed at changing behavior through systemic reinforcement or punishment.

Extinguish Misbehavior

The process of using behavioral modification techniques to reduce or eliminate undesired behaviors by removing the reinforcement that maintains the behavior.