The Income Effect Is the

question 10

Multiple Choice

The income effect is the

• A) increase in the interest rate caused by an increase in Real GDP.
• B) increase in the interest rate due to a higher expected inflation rate.
• C) decrease in the interest rate due to an increase in the supply of loanable funds.
• D) change in national income brought about by a change in interest rates.
• E) rate of change in national income brought about by a change in the supply of money.

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Definitions:

Psychodynamic

A psychological theory or approach that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Behavior Therapy

A form of psychotherapy that focuses on changing maladaptive or harmful behaviors through the application of learning principles.

Token Economy

A behavior modification system that uses tokens as rewards for desired behaviors, which can be exchanged for privileges or other rewards.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior.