The Monetary Policy Transmission Mechanism Describes

question 102

Multiple Choice

The monetary policy transmission mechanism describes:

• A) how a regulatory policy change might be transmitted into the economy affecting market structure.
• B) how an export policy change might be transmitted into the economy affecting spending multipliers.
• C) how a monetary policy change might be transmitted into the economy affecting prices, output and employment.
• D) how a competition policy change might be transmitted into the economy affecting prices, output and employment.

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Definitions:

Variable-ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable number of responses, which tends to produce high and steady rates of response.

Continuous Reinforcement

A method of learning where every correct response is reinforced every time, leading to faster acquisition of behavior but quicker extinction once reinforcement stops.

Partial Reinforcement

A conditioning schedule where only some responses are reinforced, leading to more resistant behaviors to extinction.

Delayed Reinforcer

A reward that does not immediately follow an action but is delayed for a certain time.