Starting from a Position Where the Nation's Money Demand Equals

question 49

Multiple Choice

Starting from a position where the nation's money demand equals the money supply,and its balance of payments is in equilibrium,economic theory suggests that the nation's balance of payments would move into a deficit position if there occurred in the nation a:

• A) Decrease in the money supply
• B) Increase in the money demand
• C) Decrease in the money demand
• D) None of the above

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Definitions:

Stimulus Discrimination

The learned ability to differentiate between a conditioned stimulus and other stimuli that are not paired with an unconditioned stimulus.

Conditioned Stimulus

A stimulus that initially does not trigger a response, but after being paired with an unconditioned stimulus, it comes to elicit a conditioned response.

Stimulus Generalisation

The process by which a conditioned response is triggered by stimuli similar to the original stimulus in classical conditioning.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without any additional conditioning.