In General,when People Hold Excess Money Balances,they

question 33

Multiple Choice

In general,when people hold excess money balances,they

• A) use them to bid up interest rates.
• B) hoard them indefinitely.
• C) use them to buy financial assets.
• D) supplement them by borrowing.
• E) use them to force down the prices of stocks and bonds.

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Definitions:

Variable-ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, leading to high and steady rates of response.

Fixed-ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses.

Fixed-interval

Refers to a schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed, commonly used in behavioral psychology.

Variable-interval

A timing schedule in operant conditioning where reinforcement is provided after an unpredictable time interval, leading to a steady rate of response.