The Average Propensity to Consume Refers to the

question 114

Multiple Choice

The average propensity to consume refers to the

• A)dollars of income spent for current consumption.
• B)percentage of income saved.
• C)expenditures for the minimum necessities of life.
• D)percentage of income spent for current consumption.
• E)fact that people with higher incomes spend more for the necessities of life.

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Definitions:

Drives

Internal states that motivate the organism to perform actions necessary for survival, such as hunger or thirst.

Contiguity

In psychology, contiguity is the principle that ideas, memories, and experiences are linked when one is frequently experienced with the other, leading to easier recall or association.

S-R Association

stands for Stimulus-Response Association, referring to the connection that forms between a specific stimulus and a particular response.

Guthrie

Edwin Ray Guthrie, a psychologist known for his theory that learning occurs through contiguity between stimuli and responses, not through reinforcement.