If the MPC Is 0

question 125

Multiple Choice

If the MPC is 0.9, and the government cuts spending by $200b, the overall effect on GDP will be:

• A) a decrease of $2,000b.
• B) an increase of $2,000b.
• C) a decrease of $1,800b.
• D) an increase of $180b.

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Definitions:

Operant Conditioning

The procedure by which a change in the consequences of a response will affect the rate at which the response occurs.

Fixed-Interval Reinforcement

A schedule in operant conditioning where a response is rewarded only after a specified amount of time has elapsed.

Internal Forces

Psychological or emotional factors originating within an individual that influence thoughts, feelings, and behaviors.

Psychoanalytic

Pertaining to psychoanalysis, a therapeutic approach and theory of psychology developed by Sigmund Freud that emphasizes unconscious motivations and conflicts in mental disorders.