When the Money Market Is Drawn with the Value of Money

question 180

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,the money demand curve slopes

• A)upward,because at higher prices people want to hold more money.
• B)downward,because at higher prices people want to hold more money.
• C)downward,because at higher price people want to hold less money.
• D)upward,because at higher prices people want to hold less money.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Stimulus Generalization

The tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, evokes a conditioned response.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a response increases the likelihood of that response in the future.