How Does an Increase in the Short-Term Interest Rate Affect

question 99

Multiple Choice

How does an increase in the short-term interest rate affect peoples' desire to hold real money balances?

• A) People will hold more money to compensate for the higher interest rate.
• B) People will hold more money in anticipation of higher inflation.
• C) People will hold less money since they would be sacrificing more interest by holding money.
• D) People will hold less money since it is not worth as much.

Describe the behavior systems approach and its assumptions regarding learning and instinct.

Acknowledge the role of environmental and species-specific factors in the learning process.

Recognize the importance and methods of preventing aversive conditioning in clinical settings.

Interpret theories and experimental findings related to flavor aversion learning.

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Definitions:

S-R Association

The connection between a stimulus (S) and the response (R) it triggers, fundamental to behaviorist theories of learning.

Behavior-Reinforcement Belief

The conviction that the likelihood of a behavior occurring can be increased by following it with a positive consequence or reward.

Associative Expectancy

The belief or expectation that a particular stimulus will be followed by another stimulus or response, based on experiences of association between the two.