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The Portfolio Theories of Money Demand State That When Income

question 17

Multiple Choice

The portfolio theories of money demand state that when income (and therefore,wealth) is higher,the demand for the money asset will ________ and the demand for real money balances will be ________.


Definitions:

Variable-ratio

A reinforcement schedule in operant conditioning where a response is reinforced after an unpredictable number of responses, enhancing the robustness of the behavior.

Variable-ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, leading to a high and steady response rate.

Fixed-ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, often used in behavior analysis.

Biological Predisposed

An inherent inclination or natural tendency for individuals to exhibit certain behaviors or characteristics due to genetic factors.

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