The Initial Impact of the Fed's Open Market Sale of Government

question 45

Multiple Choice

The initial impact of the Fed's open market sale of government securities to banks is

• A) an increase in the quantity of money by some multiple of the dollar volume of the sale.
• B) an increase in bank deposits at the Fed.
• C) a decrease in the quantity of money by some multiple of the dollar volume of the sale.
• D) a decrease of the banking system's reserve deposits at the Fed.

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Definitions:

Modeling

A behavioral technique in psychology that involves learning through the observation and replication of others' behaviors.

Punishment Learning

A behavior modification strategy in which the likelihood of a behavior recurring is decreased by following it with an unpleasant outcome.

Stimulus Generalization

The tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned.

Response Generalization

The expansion of a subject's response to stimuli that are similar but not identical to the original stimulus.