After People Have Agreed to a Small Request

question 15

Multiple Choice

After people have agreed to a small request,

• A) they cancel their agreement to the small request if anyone suggests a larger request.
• B) their probability of agreeing to a large request is not affected.
• C) they become more likely to agree to a large request.
• D) they become less likely to agree to a large request.

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Definitions:

Aggregate Consumption

The total amount of goods and services consumed in an economy over a specific period.

Consumption Function

A relationship in economic terms between the gross national income and the aggregate consumption level.

Aggregate Income

The total income earned by all factors of production in an economy, including wages, rents, interest, and profits, over a specific period.

Aggregate Consumption

The total spending by households on goods and services within an economy during a specific period.