The Use of 1/MPS Formula as the Size of the Multiplier

question 142

Multiple Choice

The use of 1/MPS formula as the size of the multiplier in the economy, overstates the actual size of it because:

• A)saving is not the only fraction of the domestic income which is not spent.
• B)saving is the only fraction of the domestic income which is not spent.
• C)imports and taxes create new income in the economy.
• D)imports and not taxes creates new income in the economy.

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Definitions:

Primary Reinforcer

An innately reinforcing stimulus, such as one that satisfies a biological need.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.

Toilet Training

The process of teaching a young child to control their bladder and bowel movements and to use the toilet for elimination.

Discriminative Stimulus

A stimulus in operant conditioning that indicates the probability of consequence for a behavior; it signals whether reinforcement or punishment is likely to follow a specific response.