Which of the Following Is True of Monetary Policy

question 81

Multiple Choice

Which of the following is true of monetary policy?

• A)It uses taxation and spending to control economic activities.
• B)It is dictated by international organizations like the United Nations
• C)It is a mechanism to control the flow of foreign currency into a nation by reducing its exports.
• D)It uses variations in interest rate and money supply to influence a nation's economy.

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Definitions:

Habituation

The process by which a person or animal becomes accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Higher-order Conditioning

A classical conditioning process where a conditioned stimulus is paired with a neutral stimulus to elicit a conditioned response without the need for the original unconditioned stimulus.

Sensitization

The increased responsiveness of a sensory system to a stimulus, usually following repeated exposure to that stimulus.

Behavioral Contrast

A phenomenon where a change in conditions results in an opposite change in behavior, often observed in operant conditioning experiments.