If the Fed Is Concerned with Recession It Will ________

question 120

Multiple Choice

If the Fed is concerned with recession it will ________ the federal funds rate in order to ________ aggregate demand.

• A) raise; increase
• B) lower; increase
• C) raise; decrease
• D) lower; decrease

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Definitions:

Higher-order Conditioning

A learning process in which a stimulus that was previously neutral is paired with a conditioned stimulus to produce the same conditioned response as the original conditioned stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Spontaneous Recovery

The reappearance of conditioned responses after a period of rest and without further conditioning.

Waterfowl

Aquatic birds that are typically found in freshwater or sea near coastlines, including ducks, geese, and swans.