When We Graph Consumption as a Function of National Income

question 158

Multiple Choice

When we graph consumption as a function of national income rather than as a function of ________,the slope of this consumption function is the ________.

• A)disposable income; MPC
• B)personal income; MPC
• C)disposable income; MPS
• D)personal income; MPS

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Definitions:

Geons

Basic three-dimensional shapes that are the building blocks for recognizing objects, according to the recognition-by-components theory.

Occipital Cortex

The part of the brain located at the back of the head, crucial for processing visual information.

Temporal Cortex

Part of the cerebral cortex involved in processing auditory information and encoding memory.

Unconscious Inference

A process postulated by Hermann von Helmholtz to explain certain perceptual phenomena such as size constancy. For example, an object is perceived to be at a certain distance and this is unconsciously taken into account in assessing its retinal image size, with the result that size constancy is maintained.