With Consumption Expenditure on the Vertical Axis and Disposable Income

question 87

Multiple Choice

With consumption expenditure on the vertical axis and disposable income on the horizontal axis, the consumption function intersects the 45- degree line at $8 trillion. This result indicates that

• A) autonomous consumption spending is $8 trillion.
• B) consumption spending is less than $8 trillion because taxes must be paid.
• C) consumption spending is more than $8 trillion because taxes have been paid.
• D) consumption spending is $8 trillion when disposable income is $8 trillion.

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Definitions:

Positive Psychology

A branch of psychology focused on the study of positive emotions, strengths-based character, and healthy, fulfilling life conditions.

Objectively Measure

The process of quantifying or evaluating an attribute or phenomenon in a way that is not influenced by personal feelings, interpretations, or prejudice.

Parsing Psychology

The process of analyzing and interpreting the mental and emotional components of human behavior typically in terms of language or cognition.

Positive Institution

An organization or system contributing beneficially to the community's morale, health, and overall happiness.