Manipulating a Variable Under Carefully Controlled Conditions and Observing the Changes

question 243

Multiple Choice

Manipulating a variable under carefully controlled conditions and observing the changes in a second variable defines

• A) the testing approach.
• B) the survey approach.
• C) the experimental approach.
• D) naturalistic observation.

---

Definitions:

Induced Consumption

The concept that the level of consumer spending increases as disposable income rises, and decreases as disposable income falls, all else being constant.

Induced Consumption

Induced consumption is the portion of consumer spending that increases with an increase in disposable income.

Disposable Income

The finance available to households for expenditures and saving after reducing income taxes.

Disposable Income

Money that households can earmark for spending and saving after income taxes are considered.