The Slope of the Consumption Function Between Two Points on the Graph

question 152

Multiple Choice

The slope of the consumption function between two points on the graph is

• A) the ratio of the change in consumption to the change in disposable income between those two points.
• B) the ratio of the change in disposable income over the change in consumption between those two points.
• C) equivalent to one plus the marginal propensity to save.
• D) equivalent to the average propensity to consume.
• E) equivalent to the average propensity to savE.

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Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, at the expense of flexibility and efficiency.

Obsessions

Uncontrollable, persistent thoughts, images, ideas, or impulses that an individual feels intrude on his or her consciousness and that cause significant anxiety or distress.

Compulsions

Repetitive behaviors or mental acts that an individual feels he or she must perform.

Avoidant Personality Disorder

A disorder characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and sensitivity to rejection, leading to social inhibition and avoidance of social interactions.