When Disposable Income Increases

question 16

Multiple Choice

When disposable income increases,

• A)the consumption function shifts upward.
• B)the saving function shifts downward.
• C)a movement occurs down along the consumption function.
• D)a movement occurs up along the consumption function.
• E)a movement occurs down along the saving function.

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Definitions:

Ethnic Conflict

Disputes and hostilities between different ethnic groups, often resulting in violence and social unrest.

Gesellschaft

A type of society in which increasing importance is placed on the secondary relationships that are less intimate and more instrumental.

Gemeinschaft

German for community, a state characterized by a sense of common feeling among the members of a society, including strong personal ties, sturdy primary group memberships, and a sense of personal loyalty to one another; associated with rural life.

Pastoral Society

A social system based on the raising and herding of livestock as a primary economic activity.