As Aggregate Output Rises,the Demand for Money ________ and the Interest

question 93

Multiple Choice

As aggregate output rises,the demand for money ________ and the interest rate ________,so that money demanded equals money supplied and the money market is in equilibrium.

• A)increases;rises
• B)increases;falls
• C)decreases;rises
• D)decreases;falls

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Definitions:

Operant Conditioning

Operant conditioning is a learning process wherein behavior is modified by reinforcement or punishment, a principle established by B.F. Skinner in behavioral psychology.

Oatmeal Mush

A simple, traditional dish made by cooking oats with water or milk until they form a soft, mushy consistency.

Puff of Air

A brief blast of air used in various psychological and medical tests, often to gauge the blink reflex or to administer certain substances.

Operant Conditioning

A type of learning in which behavior is strengthened if followed by a reinforcer or diminished if followed by a punisher.