If the Consumption Function Is Given by C = 150

question 155

Multiple Choice

If the consumption function is given by C = 150 + 0.85Y and Y increases by 1 unit, then savings:

• A)decreases by 0.85 unit
• B)decreases by 0.15 unit.
• C)increases by 0.15 unit.
• D)increases by 0.85 unit.

Learn the application and benefits of using decision matrices in evaluating options.

Understand the concept of normative and informational influence and its application in real-life situations.

Recognize the impact of priming and how it can influence individuals' attitudes and actions.

Identify factors that contribute to or detract from successful relationships and communication strategies recommended by professionals.

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Definitions:

Self-Handicapping

A cognitive strategy by which people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Disadvantage

A circumstance or condition that unfavorably affects someone, reducing their chances of success.

Own Ability

An individual's self-assessed competence or skill in a particular area.

Self-Serving Biases

Cognitive biases that lead to perceiving oneself in a favorable manner, often by attributing success to internal factors and failures to external factors.