Scenario 34-2

question 4

Multiple Choice

Scenario 34-2.The following facts apply to a small,imaginary economy.
• Consumption spending is $6,720 when income is $8,000.
• Consumption spending is $7,040 when income is $8,500.
-Refer to Scenario 34-2.The multiplier for this economy is

• A)1.31.
• B)6.25.
• C)2.78.
• D)2.27.

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Definitions:

Psychoanalytic Theory

The idea that our thoughts and actions are influenced by specific unconscious forces.

Unconscious Mind

A part of the mind that influences thoughts and actions without one's awareness, according to Freudian theory.

Mental Processes

The internal cognitive mechanisms that include thinking, perceiving, problem-solving, and information processing.

John Watson

A psychologist who is considered one of the founders of behaviorism, emphasizing the importance of observable behaviors in psychology.