Answer the Question on the Basis of the Following Data

question 166

Multiple Choice

Answer the question on the basis of the following data. The data indicate that

• A) consumers spend 80 percent of their after-tax incomes.
• B) consumers spend 90 percent of their after-tax incomes.
• C) a tax reduction will reduce consumption.
• D) the relationship between consumption and after-tax income is random.

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Definitions:

Frustration-Regression Principle

A concept suggesting that when faced with frustration, individuals may regress to a previous level of maturity, affecting their problem-solving and coping strategies.

Social Needs

Basic human requirements comprising of love, belonging, and interpersonal relationships.

Pleasant Supervisor

A manager or overseer who is approachable and creates a positive working environment for employees through friendly and considerate interactions.

ERG Theory

A theory in psychology that categorizes human needs into three categories: Existence, Relatedness, and Growth, suggesting people are motivated by these in succession.