Suppose the Multiplier Has a Value That Exceeds 1,and There

question 33

Multiple Choice

Suppose the multiplier has a value that exceeds 1,and there are no crowding out or investment accelerator effects.Which of the following would shift aggregate demand to the right by more than the increase in expenditures?

• A)an increase in government expenditures
• B)an increase in net exports
• C)an increase in investment spending
• D)All of the above are correct.

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Definitions:

Stimulus Generalization

The phenomenon where a response to a specific stimulus becomes associated with similar stimuli, resulting in a similar response.

Type I Punishment

A method of behavior modification that involves the application of an aversive stimulus following an unwanted behavior, aimed at decreasing the frequency of that behavior.

Type II Punishment

A form of punishment where a positive stimulus is removed following undesirable behavior to decrease the likelihood of that behavior occurring again.

Positive Reinforcer

A stimulus or event that increases the likelihood of a behavior being repeated when it is presented following that behavior.