Figure 10.7 -Refer to Figure 10.7.A Movement from Point D to Point

question 71

Multiple Choice

Figure 10.7

-Refer to Figure 10.7.A movement from point D to point C could be caused by

• A) a positive demand shock.
• B) an increase in the term premium investors expect in the future.
• C) an increase in the term structure effect.
• D) an increase in the expected rate of inflation.

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Definitions:

Classical Conditioning

Classical conditioning is a learning process through which an association is made between a naturally occurring stimulus and a previously neutral stimulus.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome after the display of a behavior increases the likelihood of that behavior being repeated in the future.

Fixed-Ratio Schedule

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