The Oversimplified Multiplier Formula Assumes That the

question 182

Multiple Choice

The oversimplified multiplier formula assumes that the

• A)level of consumption spending is fixed.
• B)price level is fixed.
• C)government spending is fixed.
• D)net exports depend on income.

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Definitions:

Insight Learning

A form of problem solving that occurs when a solution to a problem suddenly becomes apparent, often without trial-and-error behavior.

Law of Effect

A principle of learning that states behaviors followed by positive outcomes will be repeated, while those followed by negative outcomes will not.

Negative Reinforcement

A process in behavioral psychology where the removal of an unpleasant stimulus strengthens or increases the likelihood of a response.

Punishment

A consequence that reduces the likelihood of a behavior recurring, often by introducing a negative outcome or removing a positive condition.