Along the Aggregate Consumption Function,an Increase in Income Will

question 128

Multiple Choice

Along the aggregate consumption function,an increase in income will

• A)cause autonomous consumption to rise
• B)shift the consumption function upward
• C)cause a corresponding downward shift of the saving function
• D)cause movement along the given consumption function
• E)shift the consumption function downward

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Definitions:

Reflexive

Pertaining to or characterized by reflex action; automatic and involuntary response to stimuli.

Primary Circular Reactions

Repetitive actions in very young infants, which serve to build the infant’s own sensory-motor coordination.

Pleasurable Actions

Activities or behaviors that produce feelings of enjoyment or satisfaction.

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit a similar response.