As the Marginal Propensity to Consume (MPC) Decreases, the Spending

question 36

Multiple Choice

As the marginal propensity to consume (MPC) decreases, the spending multiplier

• A) increases.
• B) decreases.
• C) remains constant.
• D) becomes indefinable.

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Definitions:

Salivation

The secretion of saliva, often in response to the sight, smell, or taste of food, which is part of the digestive process.

Food

Any nutritious substance that humans or animals eat or drink to maintain life and growth.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer.

Partial Reinforcer

A type of reinforcement strategy where a reward is given only some of the time after the desired behavior is exhibited.