Which Set of Actions Could the Fed Use to Increase

question 336

Multiple Choice

Which set of actions could the Fed use to increase the money supply?

• A) discount rate cut and an open market sale
• B) an open market purchase and a tax cut
• C) a reduction in the required reserve ratio and an open market purchase
• D) an open market sale and a reduction in the required reserve ratio

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Definitions:

Observational Learning

A learning process in which individuals acquire new behaviors by watching and imitating others, as proposed by Albert Bandura.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, through which an association is made between a behavior and a consequence.

Insight Learning

A type of learning that occurs when an individual suddenly realizes how to solve a problem without trial-and-error, often leading to immediate solution understanding.

Köhler

Refers to Wolfgang Köhler, a German psychologist and one of the founders of Gestalt psychology, which emphasizes the organization of perception and thinking in a "whole" rather than in isolated elements.