What Is Meant by the Problem of Time Consistency in the Conduct

question 34

Essay

What is meant by the problem of time consistency in the conduct of financial system policy?

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Definitions:

Conditioned Stimulus

A formerly neutral signal that, once it is linked with an unconditioned stimulus, ultimately evokes a conditioned response.

Unconditioned Stimulus

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

Immediate Reinforcers

Immediate reinforcers are stimuli that follow a behavior and increase the likelihood of its repetition shortly thereafter.

Delayed Reinforcers

Rewards that are not immediately given after a desired behavior, which can affect the strength of the learned behavior over time.