The Real-Balances, Interest-Rate, and Foreign Purchases Effects All Help Explain

question 149

Multiple Choice

The real-balances, interest-rate, and foreign purchases effects all help explain

• A) why the aggregate demand curve is downsloping.
• B) why the aggregate supply curve is upsloping.
• C) shifts in the aggregate demand curve.
• D) shifts in the aggregate supply curve.

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Definitions:

Skinner

An American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Response Deprivation Theory

The idea that when a contingency restricts access to an activity, it causes that activity to become a reinforcement.

Premack's Principle

A principle stating that more probable behaviors can serve as reinforcers for less probable behaviors.

High-Probability Activities

Activities that an individual is highly likely to engage in, often used in behavior modification by allowing access to them as a reward.