A Major Difference Between the Transactions Demand for Money and the Precautionary

question 173

Multiple Choice

A major difference between the transactions demand for money and the precautionary demand is that the

• A) transactions demand means that people are foregoing interest but they are not foregoing interest in the precautionary demand.
• B) transactions demand leads to the purchase of assets while the precautionary demand does not.
• C) transactions demand involves expected expenditures while the precautionary demand involves unexpected expenditures.
• D) transactions demand is for emergencies while the precautionary demand is for every day expenditures.

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Definitions:

Extra Recess

Additional break time given to students during the school day, beyond the regular scheduled recess, for physical activity, relaxation, or social interaction.

Eyeblink Conditioning

Experimental technique in which subjects learn to pair a formerly neutral stimulus with a defensive blinking response.

Classical Conditioning

A learning process where a neutral stimulus becomes associated with a meaningful stimulus, resulting in a conditioned response.

Eyeblink Conditioning

A form of classical conditioning where a subject learns to blink in response to a previously neutral stimulus that has been paired with an unconditioned stimulus that prompts blinking.