What characterizes a compact state in psychology?

A compact state in psychology is characterized by having enacted compact legislation. This legislation allows for a streamlined process whereby psychologists can practice across state lines without needing to obtain multiple licenses, so long as they meet the requirements outlined in the compact. This is essential for promoting greater access to mental health care and facilitating the mobility of practitioners.

In contrast, the other options do not accurately reflect the defining features of a compact state in this context. High rates of mental health funding, strict regulations on psychological practice, and low population density may relate to various aspects of mental health services or demographics, but they do not specifically pertain to the legal framework that establishes a compact state for psychologists. The focus of compact legislation is on the legal permissions and frameworks that enable practice across jurisdictions, rather than on funding levels, regulatory strictures, or population characteristics.