The Higher the Marginal Propensity to Consume

question 30

Multiple Choice

The higher the marginal propensity to consume,

• A) the bigger the multiplier effect will be.
• B) the smaller the spending effect will be.
• C) the bigger the incentive effect will be.
• D) the smaller the incentive effect will be.

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Definitions:

Tricyclics

A class of antidepressant medications that work by increasing levels of norepinephrine and serotonin in the brain to improve mood.

SSRIs

Selective Serotonin Reuptake Inhibitors, a class of drugs commonly used to treat depression and anxiety disorders by increasing serotonin levels in the brain.

Reinforcement

In operant conditioning, what occurs when a behaviour increases in frequency as a result of consistent consequences.

Problem Solving

The process of identifying solutions to specific issues by applying appropriate techniques or knowledge.