The Difference Between Consumption Spending and Disposable Income _____

question 126

Multiple Choice

The difference between consumption spending and disposable income _____.

• A)decreases as income increases
• B)stays proportionally the same as income increases
• C)decreases if the interest rate increases
• D)equals the amount of taxes paid
• E)equals saving

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Definitions:

Distention

The act or condition of being stretched, swollen, or inflated due to pressure from within.

Stomach

Large sac between the esophagus and the small intestine, lying just beneath the diaphragm.

Enterogastric Reflex

A physiological process that slows the emptying of the stomach contents into the small intestine.

Duodenal Wall

The lining of the duodenum, which is the first part of the small intestine immediately beyond the stomach.