Assume Autonomous Net Taxes Rise by $400; the Marginal Propensity

question 21

Multiple Choice

Assume autonomous net taxes rise by $400; the marginal propensity to consume = 3/4.Net exports,planned investment,taxes,and government purchases are autonomous and remain fixed.As a result,consumption will initially

• A)fall by $400
• B)rise by $400
• C)fall by $300
• D)rise by $300
• E)remain unchanged

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Definitions:

Immediate Reinforcer

A reward that occurs directly following a behavior, which increases the likelihood of the behavior being repeated in the future.

Good Behavior

Actions that are considered to be in accordance with societal or specific setting standards, often rewarded or looked upon favorably.

Fixed Interval Schedule

A type of reinforcement schedule in operant conditioning where rewards are provided after a specific fixed time has elapsed.

Reinforcement

A stimulus that follows a response and increases the frequency of the response.