If the Marginal Propensity to Consume Is 0

question 127

Multiple Choice

If the marginal propensity to consume is 0.8, by how much will total income increase after an initial $200 is spent?

• A) $40
• B) $160
• C) $200
• D) $1,000

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Definitions:

Variable-ratio

A reinforcement schedule in which a response is reinforced after an unpredictable number of responses, leading to high and steady response rates.

Negative Reinforcer

A stimulus whose removal immediately after a response increases the frequency of that response in the future.

Immediate Reinforcer

A reward that occurs directly following a behavior, which increases the likelihood of that behavior being repeated.

Variable-ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable number of responses, which tends to produce high and steady rates of response.