The More Substitutable Current Consumption Is with Future Consumption, the More

question 11

True/False

The more substitutable current consumption is with future consumption, the more likely it is that an increase in the interest rate will cause an increase in savings.

---

Definitions:

Occurrence

Occurrence denotes an event or a situation that happens or takes place, often used to describe instances of varying significance.

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Reinforcement

In psychology and behaviorism, it’s a consequence applied that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Fixed Interval Schedule

A reinforcement strategy in behavioral psychology where rewards are delivered at consistent, predetermined intervals of time.