Increased Liquidity in the Banking System Occurs When ________

question 78

Multiple Choice

Increased liquidity in the banking system occurs when ________.

• A)people buy more bonds
• B)the demand for real money balances declines
• C)banks buy more bonds from the central bank
• D)all of the above
• E)none of the above

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any learning being involved.

Intermittent Pairing

A learning process in classical conditioning where the conditioned stimulus is sometimes, but not always, paired with the unconditioned stimulus, leading to a learned association.

Learned Response

A reaction that is developed as a result of experience.