Everything Else Held Constant,when Stock Prices Become Less Volatile,the Demand

question 130

Multiple Choice

Everything else held constant,when stock prices become less volatile,the demand curve for bonds shifts to the ________ and the interest rate ________.

• A)right;rises
• B)right;falls
• C)left;falls
• D)left;rises

---

Definitions:

Partial Reinforcement Extinction Effect

A phenomenon where behaviors reinforced intermittently are more resistant to extinction than behaviors reinforced continuously.

Disequilibrium Principle

A concept in economics and game theory where participants' strategies are not in perfect balance, leading to changing strategies over time.

Disequilibrium Principle

A concept in cognitive psychology suggesting that learning occurs when existing knowledge is challenged by new information, leading to cognitive growth.

Premack Principle

The Premack Principle is a psychological concept that states a more preferred activity can be used as a reward to reinforce the performance of a less preferred activity.