Assume That the MPC Is

question 204

Multiple Choice

Assume that the MPC is .75, and investment spending rises by $25 billion.How much will real GDP change?

• A)$25 billion 
• B)$75 billion 
• C)$100 billion 
• D)$175 billion

Recognize Freud's theory of personality development and its components.

Understand the mechanism and function of defense mechanisms in psychoanalytic theory.

Identify the limitations and criticisms of both cognitive and behavioral theories.

Distinguish between the principles of reinforcement schedules in behavior modification.

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Definitions:

Delaying Gratification

The capacity to withstand the allure of an instant gratification in favor of receiving a reward at a later time.

Temporal Discounting

The tendency to devalue rewards and consequences that happen in the future in favor of immediate gratifications.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Certainty Effect

The tendency of people to overweight outcomes that are certain relative to outcomes which are only probable.