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Economists think that the marginal propensity to consume for the U.S.economy is somewhere around 0.9.Based on our simple multiplier formula,this would imply that the multiplier for the United States should be around 10.However,economists agree that the spending multiplier is closer to 2.What might explain this supposed anomaly?
Reinforcements
In behavioral psychology, stimuli which, when presented after a behavior, increase the likelihood of that behavior being repeated.
Deficiencies
The absence or lack of necessary qualities, skills, or resources.
Positive Consequence
A beneficial result or effect of an action or decision, often used to encourage desirable behaviors.
Promotion
The act of raising someone to a higher position or rank or the increasing of something's importance or value.
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