The Simple Multiplier, Which Applies to Short- Run Situations in Which

question 54

Multiple Choice

The simple multiplier, which applies to short- run situations in which the price level is constant, describes changes in

• A)the equilibrium level of national income caused by changes in autonomous expenditure.
• B)investment induced by changes in equilibrium income.
• C)employment induced by changes in equilibrium income.
• D)saving caused by changes in investment.
• E)the rate of interest caused by increased demand for credit.

Recognize the historical development and influential figures of behaviourism and humanistic psychology.

Appreciate the role of the environment and individual choice in psychological development and behaviour.

Identify the relationship between psychology and philosophical perspectives such as British empiricism.

Understand the principles of positive psychology and its origins.

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Definitions:

Account Balance

The amount of money held in a financial account, which reflects all transactions made.

Interest

The cost of borrowing money, usually expressed as a percentage of the principal, paid by the borrower for the use of borrowed funds.

Rate of Return

The positive or negative change in an investment's worth within a specific period, shown as a percent of the cost of the investment.

Investment Account

A financial account held at a financial institution that holds investments such as stocks, bonds, mutual funds, and other assets for the investor.