The Demand for Money Is Based on a

question 47

Multiple Choice

The demand for money is based on a

• A) necessity demand and a luxury demand.
• B) demand for liquidity and a demand for wealth.
• C) speculative demand, a transactions demand, and a precautionary demand.
• D) demand for cash, a demand for securities, and a demand for real estate.
• E) consumption demand, an investment demand, and a government demand.

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Definitions:

Acquisiiton

In psychology, refers to the process of acquiring new information, behaviors, or abilities through direct experience or instruction.

Generalization

The extension of learned responses to stimuli that are similar but not identical to the conditioned stimulus in a learning process.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of time without exposure to the conditioned stimulus.

Extinction

In psychology, the process through which a conditioned response decreases in frequency and eventually disappears as a result of the withdrawal of reinforcement.