Empirical Studies of Aggregate Consumption Have Shown That

question 13

Multiple Choice

Empirical studies of aggregate consumption have shown that

• A)100% of the variation in consumption can be explained by changes in current income
• B)wealth effects generally account for only a small amount of consumer expenditures
• C)wealth effects generally are very large, which explains the large variations in consumption from year to year
• D)changes in wealth have a bigger impact on consumption than changes in income
• E)the marginal propensity to consume out of wealth is close to one

---

Definitions:

Cultural Imperialism

The dominance of one culture over another, historically often through colonization, which imposes its values, practices, and way of life onto another culture.

American Cultural Values

The set of core beliefs and ideals that significantly influence the social behavior and norms in the United States, such as individualism, freedom, and competitiveness.

Western Cultural Imperialism

The domination of Western cultural values and practices over those of other cultures, often leading to cultural homogenization.

Nonmaterial Culture

The intangible elements of a culture, such as beliefs, practices, norms, and values, that shape a society's way of life.