An Increase in the Interest Rate Causes

question 212

Multiple Choice

An increase in the interest rate causes

• A)a movement up along the money demand curve.
• B)a movement down along the money demand curve.
• C)the money demand curve to shift to the left.
• D)the money demand curve to shift to the right.

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Definitions:

Extinction

A process in which the conditioned response is weakened when the conditioned stimulus is repeated without the unconditioned stimulus.

Acquisition

The gradual formation of an association between conditioned and unconditioned stimuli.

Spontaneous Recovery

A process in which a previously extinguished response reemerges after the conditioned stimulus is presented again.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, triggers a conditioned response.