The Vertical Intercept of the Consumption Function That Represents the Portion

question 2

Multiple Choice

The vertical intercept of the consumption function that represents the portion of consumption expenditure not associated with a level of disposable income is known as:

• A) zero income intercept.
• B) disposable income intercept.
• C) autonomous consumption.
• D) automatic consumption line.

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Definitions:

Heuristic

A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than an algorithm.

Tools

Devices or implements used to carry out a function or perform a task, often making jobs easier or possible.

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision making by reducing the amount of information processed.

Algorithms

Precise rules or procedures that are systematically followed to produce a specific outcome or to solve a problem.