Which of the Following Is Likely to Happen If the Fed

question 124

Multiple Choice

Which of the following is likely to happen if the Fed conducts a contractionary monetary policy?

• A) Banks will make more loans.
• B) Labor demand will increase.
• C) The stock of money in the economy will decrease.
• D) The nominal interest rate will decrease.

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Definitions:

Exemplars

Stimuli that are typical or representative of those found in the settings in which generalization is desired. They serve as a pattern or guide for cueing behavior.

Social Validity

The degree to which the goals, procedures, and outcomes of an intervention are acceptable and relevant to the target population, stakeholders, and society at large.

Stimulus Generalization

A psychological phenomenon where a response to a specific stimulus becomes associated with other stimuli that are similar, leading to a similar response even in the absence of the original stimulus.

Response Generalization

The process by which the effects of a learned behavior spread to similar behaviors not directly targeted by the initial intervention.