Economists Expect the Relationship Between Consumption and Disposable Income to Be

question 142

Multiple Choice

Economists expect the relationship between consumption and disposable income to be

• A)unpredictable.
• B)transitory.
• C)fixed.
• D)inverse
• E)stable.

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Definitions:

Parsimonious Theory

A theory that explains a phenomenon in the simplest terms, using a minimum number of principles or assumptions.

Diverse Observations

Encompasses the act of noticing or perceiving a wide range of different aspects, situations, or behaviors, emphasizing the importance of a broad perspective.

Simple Principles

Basic, fundamental rules or concepts that guide actions, decisions, or procedures.

Confound

A variable other than the one intended to be manipulated by the experimenter that may be responsible for the effect on the dependent variable, making alternative explanations possible.