When the Number of Dollars Needed to Buy a Representative

question 151

Multiple Choice

When the number of dollars needed to buy a representative basket of goods falls, what happens to the value of money?

• A) It rises, and so the price level rises.
• B) It rises, and so the price level falls.
• C) It falls, and so the price level rises.
• D) It falls, and so the price level falls.

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Definitions:

Classical Conditioning

The method of acquiring a response through the repetitive coupling of two stimuli; initially, the second stimulus triggers the response, but the first stimulus eventually triggers it alone.

Rescorla

Associated with the Rescorla-Wagner model of classical conditioning, focusing on the strength of associations between conditioned and unconditioned stimuli.

Phobias

Intense, irrational fears of specific objects, activities, or situations that lead to a desire to avoid them.

Classical Conditioning

The practice of learning by frequently pairing two stimuli together; a response first provoked by the second stimulus is later provoked by the first stimulus without the second.