Consider a Consumption Function of the Following Form: C =

question 52

Multiple Choice

Consider a consumption function of the following form: C = 50 + (0.6) Y_D. At what level of disposable income will desired savings be equal to zero?

• A)50
• B)125
• C)31.25
• D)83.33
• E)208.33

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that categorizes human needs into a hierarchical structure, beginning with physiological needs and progressing to self-actualization.

Social Status

The position or rank of a person within the societal hierarchy, influenced by factors such as wealth, occupation, education, and family background.

Humanistic Theory

An approach to psychology that emphasizes individual potential for growth and the role of unique perceptions in guiding behavior and mental processes.

Internal Conflict

Psychological struggle within the mind of a person, often involving the competition of multiple desires, needs, or duties.