If the Bank of Canada Increases the Monetary Base by $5

question 36

Multiple Choice

If the Bank of Canada increases the monetary base by $5 million and the money multiplier is 5,M1 will

• A)rise by $25 million.
• B)fall by $25 million.
• C)rise by $1 million.
• D)fall by $1 million.

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Definitions:

Aversive Event

An event that is unpleasant or undesirable and often leads to negative reactions or behaviors in an effort to avoid it.

Positive Event

An occurrence or situation that leads to beneficial or favorable outcomes for an individual or group.

Primary Reinforcer

A naturally reinforcing stimulus, such as food or pain relief, that does not require learning to become effective.

Aversive Event

An unpleasant or undesirable occurrence that can lead to negative reactions or behaviors, often used in the context of learning and behavior modification.