If an Individual Moves Money from a Demand Deposit Account

question 30

Multiple Choice

If an individual moves money from a demand deposit account to a money market deposit account

• A)M1 decreases and M2 stays the same.
• B)M1 stays the same and M2 increases.
• C)M1 stays the same and M2 stays the same.
• D)M1 increases and M2 decreases.

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Definitions:

Radical Behaviourism

A school of psychology that emphasizes the study of observable behavior and the role of the environment as a determinant of behavior.

Mechanistic

Pertaining to the theory or approach that interprets the functioning of a complex system as if it were a machine or as being governed by predictable and explainable processes.

Response Tendencies

Patterns of behavior that an individual exhibits in response to a specific stimulus or situation.

B. F. Skinner

An American psychologist and behaviorist known for his work on operant conditioning and his development of the theory of behaviorism.