If Disposable Income Rises by $100 Billion and Personal Consumption

question 46

Multiple Choice

If disposable income rises by $100 billion and personal consumption expenditure rises by $60 billion,what is the average propensity to consume?

• A) 0.60
• B) 0.40
• C) -0.40
• D) -1.00
• E) impossible to calculate from these figures

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Definitions:

AB Design

The most basic method for graphing behavioral observations. The designation AB refers to the two phases of the design: (1) the A, or baseline, phase, and (2) the B, or intervention, phase. During the A phase, baseline data are collected and recorded. After a stable baseline trend has been established, a vertical line is drawn, and then the intervention is introduced, which signifies the beginning of the B phase. In this phase, intervention data are collected and recorded. The teacher can evaluate the effectiveness of the intervention by comparing the data trend during the B phase to the behavioral observations collected during the A phase. A problem with this design is that it is impossible to rule out alternative explanations for behavior change during the B phase.

Graphing Behavior

The process of visually representing data from behavioral observations over time to analyze trends, patterns, or changes.

Functional Relation

In behavioral science, a relationship between a specific behavior and its consequences, indicating how the behavior is influenced by or depends on certain environmental conditions.

Data Collection Methods

The various approaches and tools used to gather information or data for analysis in research settings, can include surveys, interviews, observations, and experiments.