The Routes or Channels That Ripple Effects Created in the Money

question 46

Multiple Choice

The routes or channels that ripple effects created in the money market travel to impact the goods-and-services market are known as

• A) the transmission lag.
• B) monetary policy.
• C) the liquidity trap.
• D) the transmission mechanism.

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Definitions:

Unconditioned Stimulus

In conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Neutral Stimulus

A neutral stimulus is something in the environment that initially does not elicit any intrinsic response until it is paired with an unconditioned stimulus.

Conditioned Stimulus

An initially neutral signal that, once it is linked with a natural stimulus, eventually elicits a learned response.