When There Are Large Numbers of People Looking to Save

question 3

True/False

When there are large numbers of people looking to save their money and there is little demand for loans, one would expect interest rates to be high.

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Definitions:

Conditioned Stimulus (CS)

An initially neutral signal that, once paired with an unconditioned stimulus, begins to evoke a conditioned reaction.

Predictor

A variable used in statistical models that is believed to influence or forecast the outcome of another variable.

Puzzle Boxes

Apparatuses used in psychological and animal behavioral experiments where subjects must solve a problem or manipulate mechanisms to escape or obtain a reward.

Thorndike

An influential American psychologist who developed the law of effect, which suggests that behaviors followed by satisfying consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.