Refer to the Consumption Schedule Shown in the Graph

question 227

Multiple Choice

Refer to the consumption schedule shown in the graph. As income falls from level 3 to level 2, the amount of

• A) consumption increases and the amount of dissaving increases.
• B) consumption decreases and the amount of dissaving decreases.
• C) consumption decreases and the amount of saving decreases.
• D) consumption decreases and the amount of saving increases.

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Definitions:

Pleasure Principle

A psychoanalytic concept proposing that people seek immediate gratification of needs and desires to avoid pain or discomfort.

Psychic Tension

Mental or emotional strain and stress.

Pleasure Principle

A psychoanalytic concept suggesting that individuals seek pleasure and avoid pain to satisfy their biological and psychological needs.

Psychodynamic Therapy

A form of depth psychology, the primary focus of which is to reveal the unconscious content of a client's psyche in an effort to alleviate psychic tension.