In the Simple Deposit Expansion Model,a Decline in Checkable Deposits

question 87

Multiple Choice

In the simple deposit expansion model,a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

• A)sold $200 in government bonds.
• B)sold $500 in government bonds.
• C)purchased $200 in government bonds.
• D)purchased $500 in government bonds.

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Definitions:

Extinction Contrast Effect

The increased difference in the intensity or frequency of a response observed when a previously reinforced behavior is no longer reinforced, in the presence of a contrasting condition that continues to be reinforced.

Tokens

Symbols or objects used as representations of value or exchange, often employed in token economies for behavior reinforcement.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, operant conditioning involves an association between behaviors and their consequences.

Reinforcement

In behaviorism, any event that strengthens or increases the likelihood of a behavior.