In Order to Have a Science of Behavior, We Have

question 35

Multiple Choice

In order to have a science of behavior, we have to accept the basic assumption that

• A) psychology focuses in perceptions, images, and other phenomena that have no real basis in nature.
• B) the underlying causes of behavior are usually irrational or illogical.
• C) there are lawful, deterministic relations between behavior and its causes.
• D) there are no lawful relations between behavior and its causes

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Definitions:

Disposable Income

Funds designated to households for the dual purposes of saving and spending post income tax considerations.

MPC

The marginal propensity to consume, representing the proportion of additional income that an individual will spend on consumption.

Saving

The portion of income not spent on consumption, often put aside for future use or investment.

Disposable Income

The amount of money an individual or household has available to spend or save after income taxes have been deducted.