If the Cash Rate Is Increased, the RBA Is Trying

question 6

Multiple Choice

If the cash rate is increased, the RBA is trying to:

• A)address excessive inflation in the economy
• B)reduce the demand for money in the economy
• C)discourage credit-based spending
• D)all of the above

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Definitions:

DRO

Differential Reinforcement of Other behavior; a strategy where reinforcement is provided for any behavior that is not the undesired target behavior.

DRL

Differential Reinforcement of Lower rates of behavior, a technique used to decrease frequent behaviors without completely eliminating them.

Reinforcement

The process of increasing the likelihood of a behavior by following it with a positive stimulus or removing a negative one.

Differential Reinforcement

A behavior modification technique which reinforces specific behaviors while withholding reinforcement for others, often used to increase desirable behaviors and decrease unwanted ones.