If Consumption Increases and Disposable Income Remains the Same,the Average

question 144

Multiple Choice

If consumption increases and disposable income remains the same,the average propensity to consume will

• A) increase and then decrease.
• B) remain constant.
• C) increase.
• D) decrease.
• E) decrease and then increasE.

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Definitions:

Low Distinctiveness

A situation in which an individual's behavior does not vary much across different contexts or situations, indicating a possible stable personality trait or characteristic.

Kelley's Covariation Model

A psychological theory proposed by Harold Kelley that explains how individuals attribute cause to events based on the consistency, distinctiveness, and consensus of the information available.

Internal Factor

An influence or element originating within a person, such as beliefs, values, skills, or psychology, that affects their behavior or attitudes.

Kelley's Covariation Model

A theory that explains how individuals attribute cause to behavior based on the consistency, distinctiveness, and consensus of the observed action.