Suppose That Partners Kemp and Sam Open a Goldsmith Shop

question 68

Multiple Choice

Suppose that partners Kemp and Sam open a goldsmith shop and general store in the Wild West.The more rapidly people "cash in" their bank notes,

• A)the higher their profit from making loans will be
• B)the lower their profit from the goods in the store
• C)the fewer bank notes they will be able to issue
• D)the larger the denominations in which they will have to issue bank notes
• E)the smaller their reserve ratio

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, evokes a conditioned response.

Operantly Conditioned

A type of learning in which the strength of a behavior is modified by the behavior's consequences, such as reward or punishment.

Positive Reinforcement

A process in psychology that involves the addition of a stimulus after a behavior that makes the behavior more likely to occur again.

Associating Response

The process in which a connection is made between a stimulus and a reaction, often used in behavioral psychology to describe learned behaviors.