The Capacity of Short-Term Memory Is Limitless

question 3

True/False

The capacity of short-term memory is limitless.

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Definitions:

Multiplier Effect

The proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Fiscal Policy

The manipulation of economic activity through fiscal policies involving spending and taxation by a government.

Aggregate Demand

The cumulative demand for every service and product in an economic system, measured at an overall given price level for a specific time frame.

Marginal Propensity to Consume

The proportion of an increase in income that an individual or population spends on goods and services as opposed to saving.