What Factor Contributed Most to Mexico's Declaration of Independence in 1821

question 43

Multiple Choice

What factor contributed most to Mexico's Declaration of Independence in 1821?

• A) Calls for redistribution of wealth and property among Amerindians and the poor
• B) Cooperation between creoles and peninsulares
• C) Loss of faith in the Spanish king's ability to rule effectively
• D) Cooperation between Mexican and South American elites

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Definitions:

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, typically when home values or investment portfolios increase.

Induced Consumption

Describes consumer spending that increases when income increases and decreases when income decreases, directly related to the level of disposable income.