What Does the Canceling-Out Theory Maintain

question 124

Multiple Choice

What does the canceling-out theory maintain?

• A) An excitatory synaptic response will often cancel out an inhibitory synaptic response.
• B) As objects move closer to us, we perceive them to be larger than they really are.
• C) In order to maintain a stable world, our brain compensates for voluntary eye movements.
• D) Certain cells will fire only in response to a stimulus that moves left to right, while other cells will fire only in response to a stimulus that moves right to left.

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Definitions:

Money-Demand Curve

A graphical representation illustrating the relationship between the quantity of money people want to hold and the interest rate.

Price Level

The price level is a measure of the average prices of goods and services in the economy at a given time.

Cost of Borrowing

The interest and any other charges incurred by borrowing money.

Open-Market Purchases

The buying of government bonds by a central bank to inject money into the economy and expand economic activity.