What Is the Effect on the Consumption Function of an Increase

question 26

Multiple Choice

What is the effect on the consumption function of an increase in disposable income?

• A)The consumption function shifts upward.
• B)The consumption function shifts downward.
• C)There is movement upward along the consumption function.
• D)There is movement downward along the consumption function.
• E)The consumption function becomes steeper.

Understand the principles of ERG theory and how it modifies Maslow's hierarchy of needs in the context of frustration-regression.

Grasp the concepts of equity theory, including how perceptions of inequity can impact work behavior and efforts to restore equity.

Understand the expectancy theory of motivation, including the roles of expectancy, instrumentality, and valence in influencing motivation.

Comprehend goal-setting theory, how goal specificity and difficulty affect performance, and the importance of participatory goal setting.

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Definitions:

Post-traumatic Growth

A positive psychological change experienced as a result of the struggle with highly challenging life circumstances.

Psychological Functioning

The efficiency and health of cognitive, emotional, and behavioral aspects of an individual's mental state.

Traumatic Event

An incident that causes psychological, emotional, or physical harm, leading to lasting effects on an individual's well-being.

Stress Management

Techniques and psychotherapies aimed at controlling a person's level of stress, especially chronic stress, usually for the purpose of improving everyday functioning.