The Federal Reserve's Principal Tool in the Manipulation of Aggregate

question 99

True/False

The Federal Reserve's principal tool in the manipulation of aggregate demand is the personal income tax.

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Definitions:

Target Behavior

A specific behavior chosen for change or intervention.

Stimulus

An event, object, or signal that elicits or induces a response from an organism or system.

DRI

Differential Reinforcement of Incompatible behavior, a technique used to reduce unwanted behavior by reinforcing a behavior that is incompatible with it.

DRA

Differential Reinforcement of Alternative behavior, a strategy focusing on reinforcing a desirable behavior to replace an undesirable one.