An Estimate of the MPC in the U

question 95

Multiple Choice

An estimate of the MPC in the U.S. is 0.90. Paul Krugman, the 2008 Nobel Prize winner in economics, stated, "... you'd be hard pressed to argue for an overall multiplier as high as 2."
Www) nytimes.com, 11/10/2008
What factors could explain the difference between the MPC and Krugman's estimate of the multiplier?

• A) exports and investment
• B) investment and imports
• C) imports and taxes
• D) taxes and investment

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Definitions:

Unconditioned Stimulus

In classical conditioning, it refers to a stimulus that naturally triggers a response without any prior learning.

Discriminative Response

A behavioral response that differentiates between various stimuli, showing an ability to discern or discriminate between them.

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned through association.

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