If Consumers Spend 98 Cents Out of Every Extra Dollar

question 35

Multiple Choice

If consumers spend 98 cents out of every extra dollar received,the:

• A) MPC is 98.
• B) MPS is 1.02.
• C) MPC is 0.98.
• D) MPC is 0.02

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period without exposure to the conditioned stimulus.

Stimulus Generalization

The process by which a conditioned response becomes associated with stimuli that are similar but not identical to the original conditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Heredity

The transmission of physical or mental traits from one generation to the next through genetics.