When the Consumption Function Is Plotted on a Graph

question 164

Multiple Choice

When the consumption function is plotted on a graph,

• A) consumption is on the horizontal axis and saving is on the vertical axis.
• B) consumption is on the vertical axis and saving is on the horizontal axis.
• C) consumption is on the horizontal axis and disposable income is on the vertical axis.
• D) consumption is on the vertical axis and disposable income is on the horizontal axis.
• E) consumption is on the horizontal axis and investment is on the vertical axis.

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Definitions:

Recall

The cognitive process of retrieving past information or experiences from memory without the aid of explicit cues.

Errors

Mistakes or inaccuracies in action, calculation, opinion, or judgment caused by poor reasoning, carelessness, or insufficient knowledge.

Working Memory

A brain function of limited capability designed to hold information in the short term for later processing.

Chunks

In cognitive psychology, chunks refer to the units of information organized and grouped together for easier understanding and recall.