As the Interest Rate Increases,the Opportunity Cost of Holding Money

question 114

Multiple Choice

As the interest rate increases,the opportunity cost of holding money __________ and individuals choose to hold __________ money.

• A) rises; more
• B) falls; less
• C) rises; less
• D) falls; more

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Definitions:

Stimulus Generalization

The tendency to respond to stimuli that are similar, but not identical, to a conditioned stimulus in the process of learning.

Biological Preparedness

Referring to the tendency of animals to learn certain associations, such as taste and nausea, with only one or few pairings due to the survival value of the learning.

Conditioned Taste Aversions

A learned aversion to a particular food or drink because it has been associated with an unpleasant or nauseating experience.

Long-Term Spontaneous Recovery

A phenomenon in psychology where previously extinguished responses re-emerge after a period without exposure to the conditioned stimulus.