If the Stock Market Crashes

question 31

Multiple Choice

If the stock market crashes,

• A)aggregate demand increases, which the Fed could offset by increasing the money supply.
• B)aggregate demand increases, which the Fed could offset by decreasing the money supply.
• C)aggregate demand decreases, which the Fed could offset by increasing the money supply.
• D)aggregate demand decreases, which the Fed could offset by decreasing the money supply.

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Definitions:

Conditioned Avoidance Response

Behavior that is reinforced because it allows individuals to avoid situations that cause anxiety.

Unconditioned Response

A natural, unlearned reaction to an unconditioned stimulus.

Continuous Reinforcement Schedule

A reinforcement strategy in which every instance of a desired behavior is reinforced, leading to quicker learning of the behavior.

Unconditioned Avoidance Response

An automatic, natural reaction to avoid harm or unpleasantness without the need for previous conditioning.