If Consumption Spending Increases by $10 Million with No Changes

question 9

Multiple Choice

If consumption spending increases by $10 million with no changes in net transfer payments, then:

• A)public saving increases
• B)public saving decreases
• C)private saving increases
• D)private saving decreases

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Definitions:

Add a Stimulus

The act of introducing a new sensory input or trigger in an environment to elicit a response in an organism or system.

Negative Punishment

The removal of a stimulus to decrease the probability that a behavior will recur.

Positive Punishment

Adding an unpleasant stimulus to decrease the probability of a behavior's occurrence.

Negative Reinforcement

involves the removal of an unfavorable event or outcome after the display of a behavior, which in turn increases the likelihood of that behavior in the future.