Exhibit 14-3 -Refer to the Graph in the Exhibit.How Could the Bank

question 59

Multiple Choice

Exhibit 14-3

-Refer to the graph in the exhibit.How could the Bank of Canada return the economy to potential output?  

• A) by decreasing government spending
• B) by decreasing excess reserves in the banking system
• C) by selling Canadian government bonds to banks
• D) by increasing the bank rate

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Definitions:

Classical Conditioning

A process of learning where two stimuli are continually paired together; the response, initially caused by the second stimulus, is finally caused by the first stimulus alone.

Watson

Pertains to John B. Watson, the American psychologist who founded the behaviorism school of psychology.

Thorndike

Edward L. Thorndike was an American psychologist known for his work in comparative psychology and the theory of connectionism which helped lay the scientific foundation for educational psychology.

Scientific Community

A collective of scientists and researchers who share knowledge, collaborate on projects, and contribute to the advancement of science through publications and peer review.