A Leakage Occurs in an Economy When

question 81

Multiple Choice

A leakage occurs in an economy when:

• A) part of business revenue does not end up as income in the circular flow.
• B) transfer payments grow during recessions in an economy.
• C) the government ends up spending more on fiscal policy than it intended to spend.
• D) part of income is not spent on the country's output but is used for savings, taxes, or imports.

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Definitions:

Salient Stimuli

Stimuli that are more noticeable or significant to the organism, often due to their novelty or intensity, and thus more likely to affect behavior.

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning.

Unconditioned Stimuli

Stimuli that naturally and automatically trigger a response without any prior learning or conditioning.

Systematic Desensitization

A graduated counterconditioning treatment for phobias in which the relaxation state is associated with the phobic object.