The Fed's Policy Beginning in 1983 Was to Keep the Growth

question 18

Multiple Choice

The Fed's policy beginning in 1983 was to keep the growth in borrowed reserves within some specified range. As a result, the Fed ________.

• A) supplied reserves through open market purchases when borrowed reserves fell.
• B) refused reserves through open market purchases when borrowed reserves rose.
• C) supplied reserves through open market sells when borrowed reserves rose.
• D) supplied reserves through open market purchases when borrowed reserves rose.

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Definitions:

Operant Behavior

Behavior emitted spontaneously or voluntarily that operates on the environment to change it.

Respondent Behavior

Reactions that are automatic and involuntary, typically elicited by specific stimuli, contrasted with operant behavior, which is influenced by its consequences.

Extinguishable Behavior

A learned response that decreases in frequency or disappears when it is no longer reinforced in a behavioral psychology context.

Fixed-Interval

A schedule in operant conditioning where rewards (reinforcements) are given at fixed times, provided the correct response is made.