In the Consumption Function, Consumption Is Caused by Changes in The

question 56

Multiple Choice

In the consumption function, consumption is caused by changes in the:

• A)price level.
• B)level of disposable income.
• C)interest rate.
• D)level of investment.
• E)level of real assets.

---

Definitions:

Social Inhibition

The decrease in performance or unwillingness to perform certain behaviors in the presence of others, typically due to fear of judgment or evaluation.

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony and conformity results in irrational or dysfunctional decision-making outcomes.

Groupthink Theory

A mental occurrence within a group where the pursuit of agreement or uniformity leads to illogical or ineffective choices.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, either more conservative or riskier.