An Increase in the Real Interest Rate in the United

question 117

Multiple Choice

An increase in the real interest rate in the United States changes the quantity of loanable funds demanded because

• A)U.S.residents will want to buy more foreign assets.
• B)Foreign residents will want to buy more U.S.goods and services.
• C)U.S.firms will want to purchase fewer U.S.capital goods.
• D)All of the above are correct.

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Definitions:

Positive Reinforcement

A reinforcement procedure in which a response is followed by the presentation of, or increase in intensity of, a reinforcing stimulus; as a result, the response becomes stronger or more likely to occur.

Primary Reinforcer

A stimulus that is naturally rewarding, such as food, water, or relief from pain.

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer, such as money being valued for its ability to purchase food or other basic needs.

Positive Reinforcer

A stimulus that, when presented after a behavior, increases the likelihood of that behavior occurring again.