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Other Things Equal, the Real Interest Rate and the Level

question 155

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Other things equal, the real interest rate and the level of investment are:


Definitions:

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Variable-Ratio Schedule

A reinforcement schedule where a response is reinforced after an unpredictable number of responses, making it very resistant to extinction.

Fixed-Interval Schedule

A type of reinforcement schedule in operant conditioning where rewards are delivered at fixed time intervals, provided the correct response is made.

Stimulus Generalisation

The psychological phenomenon in which responses to a specific stimulus become triggered by stimuli that are similar in some way to the original stimulus.

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