As a Rule, During Adulthood

question 8

Multiple Choice

As a rule, during adulthood

• A) skeletal muscles tend to lose strength.
• B) the circulatory system becomes less efficient.
• C) the skin becomes less elastic.
• D) all of the above.

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Definitions:

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, typically when home values or investment portfolios increase.

Induced Consumption

Describes consumer spending that increases when income increases and decreases when income decreases, directly related to the level of disposable income.