How Does M2 Differ from M1

question 66

Multiple Choice

How does M2 differ from M1?

• A) M2 includes holdings of gold but excludes currency.
• B) M2 is smaller than M1.
• C) M2 excludes traveler's checks but includes money market mutual funds.
• D) M2 includes M1 plus time deposits.

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Definitions:

Extinction

The elimination or suppression of a response caused by the discontinuation of reinforcement or the removal of the unconditioned stimulus.

S-R Association

Stands for Stimulus-Response Association, which refers to the connection formed between a specific stimulus and a consequent response in behaviorism.

Guthrie

Edwin Ray Guthrie was a behavioral psychologist known for his theory that learning is a direct association between stimulus and response, occurring in a single trial without reinforcement.

Reward Reduction

A decrease in the magnitude or frequency of a rewarding stimulus following a behavior, which can affect the future likelihood of that behavior.