A Decrease in the Price Level Will

question 154

Multiple Choice

A decrease in the price level will

• A)decrease consumption because the price of goods is lower
• B)make the consumption function flatter
• C)increase consumption because prices are wages,so people have more income
• D)increase consumption because the value of wealth has increased
• E)decrease consumption because rising interest rates make it more expensive to borrow

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Definitions:

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over internal mental states.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning and interaction with the environment, minimizing the role of heredity.

Skinner

B.F. Skinner, an influential American psychologist, known for his work in behaviorism and for developing the theory of operant conditioning.

Structuralism

A methodological principle in psychology and social sciences focusing on analyzing the basic components of complex phenomena, traditionally associated with Wilhelm Wundt and Edward Titchener.