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Assume that at every level of output households reduce their level of saving by the same absolute amount. Explain what impact if any this will have on the value of the multiplier.
Anticipatory Goal Responses
Behavioral or physiological responses that occur in anticipation of achieving a goal, often motivating the individual towards the goal.
Pavlovian Conditioning
Also known as classical conditioning, it's a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.
Drive
An internal motivational state created by physiological or psychological needs that drive behavior toward fulfilling those needs.
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