Which theory suggests that emotion is a function of both physiological arousal and the label we give that arousal?

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The two-factor theory proposes that emotions are a result of both physiological arousal and cognitive interpretation/labeling of that arousal. It suggests that our interpretation of the arousal determines the emotion we experience. For example, if we experience arousal because of racing heartbeat, we may label it as excitement or fear depending on the situation.

Which Theory Suggests That Emotion Is a Function of Both