The Consumption Function

question 82

Multiple Choice

The consumption function

• A)is a relationship between annual consumption and annual disposable income in an economy.
• B)will shift upward if aggregate household wealth declines.
• C)implies that annual consumption in an economy will be zero if disposable income is zero.
• D)is a flat line with zero slope.

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Definitions:

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A statistical term indicating an 80 percent probability that a specific event will occur or that a condition will develop.

Social Readjustment Rating Scale (SRRS)

A psychological tool used to measure the stress load individuals carry based on major life events they have experienced.

Richard Rahe

A notable American psychologist known for his research on stress and its effects on health, including the development of the Holmes and Rahe stress scale.

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