Which of the Following Ideas Is Associated with Mainstream Economics

question 56

Multiple Choice

Which of the following ideas is associated with mainstream economics?

• A)Capitalist economies tend to be stable.
• B)Monetary policy rules are desirable.
• C)Fiscal policy is a useful stabilization tool.
• D)Crowding-out of investment makes fiscal policy ineffective.

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Definitions:

Higher-order Conditioning

A form of learning in which a stimulus is first made meaningful or consequential for an organism through an initial step of learning, and then that stimulus is used as a basis for learning about some new stimulus.

Disinhibition

The reduction of inhibition, leading to an increase in spontaneous and unrestrained behavior, often as an effect of alcohol or neural damage.

Sensitization

An increased reaction to a stimulus following its repeated presentation, often observed in allergic reactions or in response to drugs.

Behavioral Contrast

The phenomenon where the rate of response to a stimulus changes significantly when the conditions of reinforcement for another stimulus are altered.