If Increases in Defense Spending by the Government "Crowd Out

question 125

Multiple Choice

If increases in defense spending by the government "crowd out" private investment spending, this will lead to

• A) higher levels of real income and wages in the future.
• B) no effects on real income and wages in the future.
• C) lower levels of real income and wages in the future.
• D) higher levels of real income and lower levels of wages in the future.

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Definitions:

Social Cognitive Theory

A framework for understanding, predicting, and changing human behavior that emphasizes the interplay of personal factors, behavior, and environmental influences.

Extinction

The process through which a previously reinforced behavior is reduced and eventually disappears when reinforcement is no longer provided.

Continuous Reinforcement

A method of learning that involves giving a reward after each desired behavior, promoting the occurrence of the behavior with no delay in reinforcement.

Partial Reinforcement

A conditioning strategy where a response is only occasionally rewarded, leading to stronger and more resistant behaviors.