In the Short Run

question 78

Multiple Choice

In the short run:

• A) only the supply of money determines the interest rate.
• B) only the demand for money determines the interest rate.
• C) the supply and demand for money determine the interest rate, and the loanable funds market follows the lead of the money market.
• D) the supply and demand for money determine the interest rate, and the money market follows the lead of the loanable funds market.

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Definitions:

Disinhibition

A reduction in restraint or inhibition which can lead to uninhibited or impulsive behavior due to various factors including alcohol, drugs, or certain mental health conditions.

Conditioned Stimulus

An initially neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In behavioral psychology, a stimulus that naturally and automatically triggers a response without any previous conditioning.

Negative Reinforcement

is a concept in behavioral psychology where the removal of a negative condition strengthens a behavior.