The Consumption Function

question 127

Multiple Choice

The consumption function:

• A) is the relationship between consumption and disposable income.
• B) shows how consumption is determined by changes in the level of disposable income.
• C) is an aggregate expenditure.
• D) is a sum of individual demand curves.

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Definitions:

Behavioral Consistency

The tendency for people to behave in the same way in different situations, reflecting the stable traits or dispositions of their personality.

Personality

The amalgamation of traits or attributes that create a person's unique character and ways of behaving.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to uncover unconscious thoughts and feelings.

Reality

The state of things as they actually exist, outside of individual perceptions or interpretations.