If Money Demand Shifted to the Right and the Federal

question 31

Multiple Choice

If money demand shifted to the right and the Federal Reserve desired to return the interest rate to its original value,it could

• A)buy bonds to increase the money supply.
• B)buy bonds to decrease the money supply.
• C)sell bonds to increase the money supply.
• D)sell bonds to decrease the money supply.

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Definitions:

Discriminative Operant

An operant behavior that is under the control of a discriminative stimulus

Behavioral Contrast

In a two-choice discrimination task, the increase in response to SD that occurs at the same time as responding to S∆ declines.

Discrimination Learning

Responding in different ways to different stimuli

Generalization Test Stimulus

A stimulus that differs from the original conditioned stimulus and is used to test the extent of stimulus generalization in an experimental setting.