Suppose Policy Makers Implement an Unexpected Monetary Contraction

question 37

Multiple Choice

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

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

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Definitions:

Same Response

This term might suggest a repeated or identical reaction to a stimulus but lacks specificity without context. In behavioral psychology, it might imply a consistent behavior in response to a stimulus.

Behaviorists

Behaviorists are psychologists who focus on observable behaviors as the primary subject matter of psychology, often emphasizing the role of learning in behavior.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences.

Modern Behaviorists

Psychologists who focus on observable and measurable behaviors, rather than internal psychological processes.