If the MPC Were to Increase from 0

question 12

Multiple Choice

If the MPC were to increase from 0.75 to 0.8, then the spending multiplier would:

• A) increase from 4 to 5.
• B) decrease from 5 to 4.
• C) increase from 0.2 to 0.25.
• D) decrease from 1.25 to 1.2.

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Definitions:

Ivan Pavlov

A Russian physiologist known for his research in classical conditioning, famously demonstrated through experiments with dogs and the conditioning of their salivary responses.

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior.

Critical Thinking

The goal of methodically analyzing and assessing a problem to come to a decision.

Scientific Disciplines

Branches of science dedicated to systematic study of the structure and behavior of the physical and natural world through observation and experiment.