The Price-Specie-Flow Mechanism Will Work Only If Governments Are Willing

question 40

Multiple Choice

The price-specie-flow mechanism will work only if governments are willing to play by the rules of the game by letting the money stock rise and fall as gold flows in and out.Once the government demonetizes (neutralizes) gold,the mechanism will break down.In addition,the effectiveness of the mechanism depends on

• A)the income elasticity of the demand for imports.
• B)the price elasticity of the demand for imports.
• C)the price elasticity of the supply of imports.
• D)the income elasticity of the supply of imports.

Identify and describe the components of a response class.

Comprehend the concept of deprivation and its role in conditioning.

Define and recognize stimulus control and its importance in behavior modification.

Describe the concept of fading and its application in behavior change.

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Definitions:

Cost of Goods

The total cost of manufacturing or acquiring a product or service that is sold to customers.

Machine-Hour

A measure of production or operation time where costs are allocated based on the number of hours a machine is operated.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead to individual jobs.

Machine-Hours

A unit of measurement for production capacity, indicating the total number of hours that machinery is operational during a given period.