When a Country's Inflation Rate Varies Substantially from Year-To-Year and Is

question 92

Multiple Choice

When a country's inflation rate varies substantially from year-to-year and is therefore difficult to predict, this will

• A) reduce the volume of trade and the gains derived from it.
• B) reduce the risk accompanying investment.
• C) encourage entrepreneurs to innovate and develop better products.
• D) increase the level of foreign investment in the country.

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Definitions:

Negative Reinforcement

The strengthening of a behavior by removing or avoiding a negative outcome or aversive stimulus.

Positive Reinforcement

The addition of a pleasant stimulus following a desired behavior, increasing the likelihood of that behavior being repeated.

Tertiary Reinforcement

A type of reinforcement that uses a stimulus indirectly linked to a primary or secondary reinforcer to modify behavior, such as money or tokens.

Conditional Reinforcement

The process by which stimuli that are associated with a primary reinforcer also become reinforcers themselves, often through classical conditioning.