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The Money Demand Curve Shifts to the Right If There

question 51

Multiple Choice

The money demand curve shifts to the right if there is _____, causing the equilibrium interest rate to _____.


Definitions:

Conditioned Stimulus

A previously neutral signal that, through association with an unconditioned stimulus, comes to elicit a conditioned response as part of classical conditioning.

Cue Deflation Effect

When the extinction of a response to one cue leads to an increased reaction to the other conditioned stimulus

Salient Conditioned Stimulus

A stimulus that stands out and is easily noticeable making it more likely to be associated with an unconditioned stimulus in the process of learning.

Extinction

In psychology, the gradual decrease and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with an unconditioned stimulus.

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