The Positive Slope of the Consumption Function Indicates That

question 106

Multiple Choice

The positive slope of the consumption function indicates that

• A)when prices fall consumers spend more.
• B)the amount of household wealth is subject to change.
• C)consumers increase their total consumption expenditure when disposable income increases.
• D)consumers spend less out of each extra dollar of income.

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Definitions:

Phobia

An extreme or irrational fear or aversion to something, often resulting in avoidance behavior and distress.

Systematic Desensitization

A therapeutic technique used to help individuals overcome phobias and anxiety, involving gradual exposure to the feared object or situation.

Phobia Development

The process through which an irrational and intense fear of a specific object, scenario, or activity is formed, often resulting from a negative experience or predisposition.

Watson's Hypothesis

A theory suggesting that all human behaviors can be conditioned, put forward by John B. Watson, a pioneer in behaviorism.