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Both Theresa and Max are trying to eliminate their daughter's behavior of whining for attention. Theresa stops paying attention when the child is whining whereas Max responds to her whining with the statement "I'll talk to you if you speak to me politely." He then ignores any subsequent whining. In this scenario, Theresa uses a(n) _____ procedure while Max uses _____.
Marginal Propensity
The ratio of the change in an economic variable, such as consumption or saving, to the change in another, typically income.
Disposable Income
The net financial position of households for spending and saving, after accounting for income taxes.
Consumption
Consumption encompasses the acquisition and use of goods and services by households to satisfy their needs and wants.
Induced Consumption
Consumer spending that is influenced by changes in income, differentiating from autonomous consumption which does not vary with income.
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