In Response to a Negative Spending Shock,a Condition of Lower

question 116

Multiple Choice

In response to a negative spending shock,a condition of lower market confidence makes monetary policy easing:

• A) more effective in raising real GDP growth.
• B) less effective in raising real GDP growth.
• C) just as effective in raising real GDP growth as higher market confidence.
• D) lead to increases in both real GDP growth and inflation.

---

Definitions:

Ratio Reinforcement

A type of operant conditioning reinforcement schedule in which a response is reinforced only after a specified number of responses have occurred.

Interval Reinforcement

A type of operant conditioning scheduling wherein rewards are given to an organism at variable time intervals to encourage behavior.

Partial Reinforcement

A conditioning schedule in which a behavior is reinforced only some of the time, making the behavior more resistant to extinction.

Continuous Reinforcement

This is a learning process in behavior modification where a reward follows every correct response, enhancing the likelihood of the behavior being repeated.