The Marginal Propensity to Save Is the Amount of Additional

question 35

True/False

The marginal propensity to save is the amount of additional savings associated with each one-dollar increase in income multiplied by the increase in income.

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Definitions:

Minimizing Law

The principle suggesting that organisms will adapt their behaviors in order to minimize negative consequences or punishments.

Contrast Law

A principle in psychology that states the perceived intensity of a stimulus can change relative to the intensity of a preceding or surrounding stimulus.

Mowrer's Two-Factor Theory

A theory proposing that avoidance learning involves both classical conditioning of fear and operant conditioning of the avoidance response.

Avoidance Conditioning

A learning process in operant conditioning wherein an individual learns a behavior to avoid an undesired stimulus or outcome.