Does Rapid Inflation Make Holding a Large Amount of Money

question 125

Multiple Choice

Does rapid inflation make holding a large amount of money a wise decision?

• A)No, because the opportunity cost of holding liquid assets is high.
• B)Yes, because you will generally need more and more to buy the goods and services you want.
• C)No, because someone might steal it or it might be destroyed.
• D)Yes, because the opportunity cost of holding liquid assets is high.

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Definitions:

Shuttle Box

An experimental apparatus used in animal learning research, typically for studying avoidance or escape conditioning, consisting of two compartments separated by a hurdle.

Escape Responding

A behavior modification strategy where the subject learns to avoid or escape an unpleasant stimulus.

Classical Conditioning

A process whereby education happens through the pairing of a naturally occurring stimulus with one that is environmental.

Positive Reinforcement

A process in behavior analysis in which a desirable stimulus is presented after a behavior, increasing the likelihood of the behavior being repeated.