A Macroeconomist Threatens to Call the Secret Service to Have

question 52

Essay

A macroeconomist threatens to call the Secret Service to have Mr. Biggy Rich arrested for counterfeiting because Mr. Rich claims he "makes a lot of money."
a. Carefully explain why the macroeconomist is making this threat based on the macroeconomic definition of money. Be sure to explain the macroeconomic functions of money.
b. Suggest an alternative phrase that Mr. Rich can use that will not result in a charge of counterfeiting.

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Definitions:

Observational Learning

A learning process where individuals learn by watching the behaviors of others and the consequences of those behaviors, as proposed by Albert Bandura.

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior by applying a stimulus after the behavior occurs.

Bobo Doll Studies

A series of experiments conducted by Albert Bandura that demonstrated that children could learn aggressive behaviors through the observation of adult models.

Aggressive

Behavior characterized by assertiveness, hostility, and possibly harm towards others, stemming from various motivational or environmental factors.