If You Save $80 When You Experience a $400 Rise

question 6

Multiple Choice

If you save $80 when you experience a $400 rise in your income,

• A) your MPS is 0.25.
• B) your MPC is 0.80.
• C) your MPC is 0.85.
• D) your MPS is 0.40.

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Definitions:

Law Of Effect

A principle in psychology that states behaviors followed by positive outcomes are likely to be repeated, and those followed by negative outcomes are not.

Thorndike

An American psychologist known for his work in the development of the theory of connectionism and contributions to educational psychology.

Operant Conditioning

The procedure of influencing the level of a behavior by the use of positive reinforcement or negative sanctions.

Law Of Effect

A principle stating that responses followed by satisfactory outcomes become more likely to occur, and those followed by unsatisfactory outcomes become less likely.