Which of the Following Can the Fed Do to Change

question 26

Multiple Choice

Which of the following can the Fed do to change the money supply?

• A)change reserves or change the reserve ratio
• B)change reserves but not change the reserve ratio
• C)change the reserve ratio but not change the reserve ratio
• D)neither change reserves nor change the reserve ratio

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Definitions:

Conditioned Response

A response that is taught in reaction to a stimulus that was once neutral but has become linked with a stimulus that naturally evokes a response.

Unconditioned Response

An automatic, natural response to a stimulus that occurs without the need for learning.

Salivation

The secretion of saliva in the mouth, which is often a response to the presence or thought of food.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive response without the need for prior learning.