When the Federal Reserve Pursues Policies That Increase Interest Rates

question 204

True/False

When the Federal Reserve pursues policies that increase interest rates, the amount of foreign funds flowing into the United States also increases.

---

Definitions:

Classical Conditioning

A foundational concept in behavioral psychology where an automatic conditioned response is established by pairing a neutral stimulus with an unconditioned stimulus.

Fixed-Interval Schedule

A system where the initial reaction is incentivized after a predetermined period has passed.

Reinforcement

In psychology, it is a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated in the future.