Fretonia and Libstien Are the Same Except Fretonia Has a Larger

question 104

Multiple Choice

Fretonia and Libstien are the same except Fretonia has a larger capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We would expect that

• A)both countries would have permanent increases in their growth rates,but the increase would initially be larger in Fretonia.
• B)both countries would have permanent increases in their growth rates,but the increase would initially be smaller in Fretonia.
• C)both countries would have temporary increases in their growth rates,but the increase would be larger in Fretonia.
• D)both countries would have temporary increases in their growth rates,but the increase would be smaller in Fretonia.

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Definitions:

Stimulus-Response Models

A framework in behavioral psychology where a specific stimulus leads to a particular response, emphasizing the predictable link between stimuli and reactions.

Expectancy-Value Theory

A psychological theory that explains how the motivation to engage in a behavior is influenced by the individual's expectation of success and the value they place on the success.

Motivated Behaviors

Actions that are initiated, guided, and maintained to fulfill a need or to achieve a particular goal.

Previous Goals

Objectives or desired outcomes that an individual or group has aimed for in the past.