The Income and Substitution Effects Move in ________ for Lenders

question 18

Multiple Choice

The income and substitution effects move in ________ for lenders and in ________ for borrowers.

• A) the same direction; the same direction
• B) the same direction; opposite directions
• C) opposite directions; the same direction
• D) opposite directions; opposite directions

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Definitions:

Repertoires

The range or collection of skills, abilities, or behaviors that an individual possesses or can perform.

Operant Conditioning

A method of learning that employs rewards and punishments to influence behavior.

Classical Conditioning

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

Temperament

Refers to the inherent part of an individual's personality and character affecting their behavior and reactions.