Which of the Following Is a True Statement About the Multiplier

question 9

Multiple Choice

Which of the following is a true statement about the multiplier?

• A)The multiplier rises as the MPC rises.
• B)The smaller the MPC,the larger the multiplier.
• C)The multiplier is a value between zero and one.
• D)The multiplier effect does not occur when autonomous expenditure decreases.

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Definitions:

Signal-detection Theory

A means to measure the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

Fechner's Law

A principle describing the relationship between the intensity of a stimulus and the magnitude of the sensory experience, stating that the intensity must increase geometrically to produce a linear increase in perception.

Sensory Adaptation

The mechanism where sensory receptors reduce their responsiveness to stimuli that remain constant over time.

Weber's Law

A principle in psychology that states the smallest perceptible difference in a stimulus is proportional to the intensity of the original stimulus.