If the Desired Intermediate Target Is a Monetary Aggregate,then the Preferred

question 10

Multiple Choice

If the desired intermediate target is a monetary aggregate,then the preferred operating target will be a(n) ________ variable like the ________.

• A) interest rate; three-month Treasury bill rate
• B) interest rate; federal funds rate
• C) reserve aggregate; monetary base
• D) reserve aggregate; nonborrowed reserves

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Definitions:

Higher-order Conditioning

A classical conditioning process where a conditioned stimulus is paired with a neutral stimulus to elicit a conditioned response without the need for the original unconditioned stimulus.

Sensitization

The increased responsiveness of a sensory system to a stimulus, usually following repeated exposure to that stimulus.

Behavioral Contrast

A phenomenon where a change in conditions results in an opposite change in behavior, often observed in operant conditioning experiments.

Habituation

A decrease in response to a stimulus after repeated presentations, indicating a form of learning that involves becoming accustomed to the stimulus.