Which of the Following Statements Is True

question 83

Multiple Choice

Which of the following statements is true?

• A)According to the permanent income hypothesis,a person who received a windfall of say $100,000 would spend most of it that year.
• B)As disposable income rises,induced consumption falls.
• C)The minimum amount that people will spend if disposable income is zero is called induced consumption.
• D)A rapid increase in the prices of residential housing results in an increase in consumption due to the wealth effect.

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Definitions:

Democrats

A major political party in the United States, historically associated with progressive policies and a broader social safety net.

Congress

The legislative body of the United States government, consisting of two chambers: the House of Representatives and the Senate.

Slave Code

Laws established to regulate the status of slaves, dictating everything from the movement to the behavior of enslaved individuals.

Upper South

A term referring to the northern group of states in the Southern United States, known historically for their significant role in the domestic slave trade prior to the Civil War.