All Else the Same,when the Fed Calls in a $100

question 179

Multiple Choice

All else the same,when the Fed calls in a $100 discount loan previously extended to the First National Bank,reserves in the banking system

• A)increase by $100.
• B)increase by more than $100.
• C)decrease by $100.
• D)decrease by more than $100.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first alone.

Reinforcement

In behavioral psychology, a process in which a behavior is strengthened by the outcome that follows, whether it's positive (reward) or negative (removal of an undesirable stimulus).

Punishment

A consequence that decreases the likelihood of a behavior being repeated.

Increase

A rise or growth in quantity, size, strength, or another measurable factor.