Which of the Following Would Increase the Short-Run Output Effects

question 39

Multiple Choice

Which of the following would increase the short-run output effects of a monetary expansion?

• A)an increase in the marginal propensity to consume
• B)an increase in the interest rate sensitivity of investment
• C)the IS curve is very flat
• D)all of the above
• E)none of the above

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Definitions:

Methodological Behaviorist

A psychologist who studies behavioral responses in a systematic and observable manner, emphasizing the importance of environmental stimuli and conditions.

Intervening Variables

Factors within a study that mediate the relationship between the independent and dependent variables, potentially influencing the outcome.

UCS

Unconditioned Stimulus, a stimulus that naturally and automatically triggers a physiological reflex or emotional response without prior learning.

UCR

Unconditioned response, a natural and automatic reaction to an unconditioned stimulus without prior learning or conditioning.