When the Market for Money Is Drawn with the Value

question 32

Multiple Choice

When the market for money is drawn with the value of money on the vertical axis and the quantity of money on the horizontal axis, long-run equilibrium is obtained when the quantity demanded and quantity supplied of money are equal due to adjustments in

• A)the value of money.
• B)real interest rates.
• C)nominal interest rates.
• D)the money supply.

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Definitions:

Skinner Bucks

A token economy system developed by B.F. Skinner, where individuals receive tokens for exhibiting desirable behavior, which can later be exchanged for rewards.

Contingency Contract

A behavioral strategy in which two parties agree on a specific change that will occur when certain conditions are met.

Group Extinction

The phenomenon when a species, cultural group, or language ceases to exist as a distinct entity.

Token Economy

A behavior modification system that utilizes tokens as rewards for desirable behaviors, which can later be exchanged for privileges or items.