Which of the Following Would Tend to Reduce the Price

question 39

Multiple Choice

Which of the following would tend to reduce the price level?

• A)a chartered bank using excess reserves to extend a loan to a customer
• B)an decrease in the bank rate
• C)a chartered bank purchasing government securities from an individual as an investment
• D)the bank of Canada selling bonds on the open market

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Definitions:

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or increased through the addition of a stimulus following the behavior.

Differential Reinforcement

A behavioral technique that involves reinforcing specific behaviors while extinguishing others by withdrawal of reinforcement.

Free Time

Unstructured time periods where individuals can engage in activities of their choosing without obligations or constraints.

Stimulus Control

A situation in which a behavior is executed more frequently in the presence of a specific stimulus because the behavior has been reinforced in the presence of that stimulus.