The Consumption Curve Intersects the 45-Degree Reference Line at $4

question 74

Multiple Choice

The consumption curve intersects the 45-degree reference line at $4 trillion.This indicates that

• A)autonomous consumption spending is $4.1 trillion.
• B)consumption spending is $4 trillion.
• C)consumption spending is less than $4 trillion since taxes must be paid.
• D)consumption spending is more than $4 trillion since taxes have been paid.

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Definitions:

Id

A term from psychoanalytic theory referring to the part of the psyche associated with instinctual impulses and demands for immediate satisfaction of basic needs.

Conscience

An inner feeling or voice viewed as acting as a guide to the rightness or wrongness of one's behavior.

Superego

In psychoanalytic theory, the part of the personality responsible for moral standards and self-criticism.

Reality Principle

The recognition, characterizing ego functioning, that we cannot always express or satisfy our id impulses.