When the Consumption Function Lies Above the 45-Degree Line, Households

question 148

Multiple Choice

When the consumption function lies above the 45-degree line, households

• A) spend on consumption an increasing percentage of any increase in income.
• B) spend on consumption a decreasing percentage of any increase in income.
• C) are dissaving.
• D) save all of any increase in income.

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Definitions:

Zone of Proximal Development

A concept in educational psychology referring to the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Scaffolding

An educational technique that involves providing support to students or learners in the early stages of learning, gradually removing the support as the learner becomes more proficient.

Rehearsal

The act of purposely repeating information to maintain it in short-term memory.

Meta Cognition

Refers to the awareness and control one has over their own thought processes, including planning, monitoring, and evaluating their cognitive activities.