Which of the Following Generally Occurs When a Central Bank

question 57

Multiple Choice

Which of the following generally occurs when a central bank pursues contractionary monetary policy?

• A)the central bank purchases bonds and the interest rate increases.
• B)the central bank purchases bonds and the interest rate decreases.
• C)the central bank sells bonds and the interest rate increases.
• D)the central bank sells bonds and the interest rate decreases.

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Definitions:

Intermittent Reinforcement

A conditioning schedule where a response is only sometimes reinforced, known to significantly increase the rate of response and resistance to extinction.

Continuous Reinforcement

A form of learning in which a behavior is reinforced every time it occurs, leading to rapid acquisition of the behavior.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response, typically because the reinforcement is withheld.

Social Learning Theory

A theory that suggests individuals learn behaviors, attitudes, and emotions through observing others, rather than through direct experience alone.