The Liquidity Preference Theory States That Each Borrower and Lender

question 9

True/False

The liquidity preference theory states that each borrower and lender has a preferred maturity and that the slope of the yield curve depends on supply and demand for funds in the long-term market relative to the short-term market.

Understand the principles of classical and operant conditioning, including key concepts like reinforcement and punishment.

Recognize the concept of associative learning and its importance in human and animal behavior.

Identify the role of observational learning and modeling in behavior acquisition.

Comprehend the significance of the tabula rasa theory and its emphasis on the impact of experience on learning.

---

Definitions:

Classical Conditioning

A habituation technique that involves repeatedly combining two stimuli, eventually resulting in a response first provoked by the second stimulus being provoked by the first stimulus alone.

Conditioned Stimulus

A stimulus that, after association with an unconditioned stimulus, comes to produce a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with another stimulus.

Extinction

In the field of psychology, the slow reduction and eventual vanishing of a learned response when the previously associated conditioned stimulus is not presented together with the unconditioned stimulus anymore.