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What Is the Main Policy Tool Available to the Federal

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What is the main policy tool available to the Federal Reserve?


Definitions:

Primary Reinforcer

A stimulus that is naturally rewarding and satisfies a basic biological need, such as food or water.

Stimulus Generalization

The process by which a response that has been learned to one stimulus is elicited by a different, but similar, stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus in classical conditioning.

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