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.

---

Definitions:

Adaptations

Modifications or adjustments in structure, function, or behavior that make a species more suited to its environment.

Imprinting

(1) The expression of a gene based on its parental origin; also called genomic imprinting or parental imprinting. (2) A type of learning by which a young bird or mammal forms a strong social attachment to an individual (usually a parent) or object within a few hours after hatching or birth.

Circadian Rhythm

The internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Environmental Stimulus

A change in the environment that elicits a response from an organism.