If Banks Choose Not to Lend Out Their Excess Reserves

question 133

True/False

If banks choose not to lend out their excess reserves then the money supply will not expand.

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Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, developed by B.F. Skinner.

B.F. Skinner

An American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Observable Conditions

Conditions or states that can be seen or noticed, allowing for objective measurement or assessment.

Cognitive Psychologists

Professionals who study mental processes such as perception, memory, thought, and problem solving.