Using the Standard 45-Degree Line Diagram, How Does an Increase

question 32

Multiple Choice

Using the standard 45-degree line diagram, how does an increase in autonomous consumption effect the expenditure schedule?

• A)It shifts the expenditure schedule downward.
• B)It shifts the expenditure schedule upward.
• C)It increases the slope of the expenditure schedule.
• D)It decreases the slope of the expenditure schedule.

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Definitions:

Safety Needs

According to Maslow's hierarchy, these are the requirements for physical security, stability, and freedom from fear.

Maladjustment

A condition whereby an individual's behavior or way of thinking does not meet the expected standard of society.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, referring to the realization or fulfillment of one's talents, potential, and capabilities.

Esteem Needs

A concept from Maslow's hierarchy of needs, representing the human desire for respect, self-esteem, and recognition from others.