If We Graph the Consumption Function Such That It Cuts

question 81

Multiple Choice

If we graph the consumption function such that it cuts the vertical axis at a point above the origin,this is because we are assuming that

• A) the MPC is positive.
• B) the MPS is positive.
• C) autonomous consumption is positive.
• D) induced consumption is positive.

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Definitions:

Uncertainty-Identity Theory

A social psychological theory suggesting that individuals join and strongly identify with groups to reduce feelings of uncertainty about themselves and the world.

Social Norms

Unwritten rules that govern the behavior of individuals within a society or group, dictating what is considered acceptable or unacceptable.

Cultural Transmission

The process whereby members of a culture learn explicitly or implicitly to imitate the beliefs and behaviors of others in that culture.

Ethnically Homogenous

A description for groups or societies that are made up of members who share the same ethnic background.