If the Spending Multiplier Is 1

question 33

Multiple Choice

If the spending multiplier is 1.2,then a $100 billion increase in government spending will increase GDP by

• A) $100 billion.
• B) $120 billion.
• C) $83.3 billion.
• D) $20 billion.

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Definitions:

Reflexive Response

A biological reaction to a stimulus that is instinctive and does not require conscious thought.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Conditional Reinforcement

Conditional reinforcement is the process by which a stimulus reinforces a behavior only when it is paired with a primary reinforcer or another strong reinforcer.

Contingent Reflex

A reflex action that depends on specific conditions or stimuli to occur, rather than happening automatically.