When the Fed Purchases _______, It Is Attempting to Directly

question 14

Multiple Choice

When the Fed purchases _______, it is attempting to directly stimulate the housing market.

• A)commercial paper
• B)short-term Treasury securities
• C)mortgage-backed securities
• D)consumer loans

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Definitions:

Contingency Theory

The view that learning occurs when stimuli provide information about the likelihood of the occurrence of other stimuli.

Unconditioned Stimulus (UCS)

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Robert Rescorla

An American psychologist known for his work on the involvement of cognitive processes in classical conditioning, especially the contingency theory of learning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.