If Disposable Income Falls by $50 Billion and Consumption Falls

question 130

Multiple Choice

If disposable income falls by $50 billion and consumption falls by $40 billion, then the slope of the consumption function is

• A)1.20.
• B)0.80.
• C)0.70.
• D)0.20.
• E)0.10.

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Definitions:

Behaviors

are the actions or reactions of an individual in response to external or internal stimuli.

Infant

A very young child, particularly before they can walk or speak; the earliest stage in human development.

Square

A geometric shape with four equal sides and four right angles.

A-not-B Error

A cognitive mistake made by infants during the sensorimotor stage where they repeatedly reach for a hidden object at a location where it was last found (A) rather than its new location (B).