An Upward Shift in the Saving Function

question 70

Multiple Choice

An upward shift in the saving function

• A) will cause GDP to rise.
• B) will have the same effect on GDP as an upward movement along the saving function.
• C) means that, at any given level of income, people want to save less.
• D) will cause GDP to fall by an amount equal to the shift divided by the marginal propensity to save.
• E) means that the marginal propensity to save must have fallen.

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Definitions:

Operant Conditioning

A learning framework in which the force of a behavior is altered by the administration of rewards or corrective actions.

Spontaneous Recovery

A conditioned response that had been eliminated reemerges after a time without any contact with the stimulus that initially created it.

Respondent Behavior

Behavior that occurs in response to specific stimuli and is usually conditioned by previous experiences.

Commonalities

The aspects, characteristics, or features that are shared among different people, groups, or things, pointing to a likeness or sameness.