Consider the Following Table These Data Suggest That:
A)consumption Varies Inversely with After-Tax Incomes

question 51

Multiple Choice

Consider the following table: $\begin{array} { | c | c | } \hline \text { After-Tax Income } & \text { Consumption } \\\hline \$ 1000 & \$ 900 \\\hline 2000 & 1800 \\\hline 3000 & 2700 \\\hline 4000 & 3600 \\\hline 5000 & 4500 \\\hline\end{array}$ These data suggest that:

• A)consumption varies inversely with after-tax incomes
• B)consumption varies directly with after-tax incomes
• C)consumption and after-tax income are unrelated
• D)a tax increase will increase consumption
• E)a tax decrease will decrease consumption

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Definitions:

Depressed

Experiencing persistent sadness, low mood, and a lack of interest or pleasure in normally enjoyable activities.

Helpless

A state or feeling of having no power or control over a situation or oneself.

Associative-Link

A cognitive connection between two ideas, concepts, or events, formed through the process of learning or experience.

Contiguity

The temporal pairing of two events