Assume the MPC Is 0

question 325

Multiple Choice

Assume the MPC is 0.625. Assuming only the multiplier effect matters, a decrease in government purchases of $10 billion will shift the aggregate demand curve to the

• A)left by about $13.3 billion.
• B)left by about $26.7 billion.
• C)right by about $36.7 billion.
• D)None of the above is correct.

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Definitions:

Fixed Interval

In the context of operant conditioning, a schedule of reinforcement where rewards are delivered at fixed time intervals, provided the correct response is made.

Variable Interval

A reinforcement schedule in which reinforcements are given after unpredictable time durations.

Fixed Ratio

A schedule of reinforcement where a response is only reinforced after a specified number of responses.

Variable Ratio

A reinforcement schedule in which responses are rewarded after a varied number of responses, enhancing motivation.