Which of the Following Serves as an Automatic Stabilizer in the Economy

question 47

Multiple Choice

Which of the following serves as an automatic stabilizer in the economy?

• A) Interest rates
• B) Exchange rates
• C) The inflation rate
• D) The progressive income tax

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Definitions:

Positive Reinforcer

A stimulus that, when presented after a behavior, increases the likelihood of that behavior happening again.

Negative Reinforcer

A stimulus whose removal following a behavior increases the likelihood of that behavior being repeated in the future.

Secondary Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; not naturally rewarding.

Negative Reinforcement

A psychological principle where the removal of an adverse stimulus strengthens a behavior.