Which of the Following Statements Is Most Correct

question 91

Multiple Choice

Which of the following statements is most correct?

• A) When the real interest rate increases the reward for saving decreases.
• B) When the real interest rate decreases current consumption becomes less expensive and the reward for saving decreases.
• C) When the real interest rate decreases the cost of current consumption increases.
• D) When the real interest rate increases the level of saving always decreases.

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior.

Operant Conditioning

An educational method where the intensity of a behavior is adjusted by rewards or consequences.

Vicarious Learning

Learning that occurs by observing the actions and outcomes of others’ behavior, rather than through direct experience.

Rewarded

Given something, usually of value or significance, in recognition of service, effort, or achievement.