An Increase in Disposable Income

question 115

Multiple Choice

An increase in disposable income:

• A) Increases consumption because it shifts the consumption schedule upward
• B) Decreases consumption because it shifts the consumption schedule downward
• C) Increases consumption by moving upward along a given consumption schedule
• D) Decreases consumption by moving downward along a given consumption schedule

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Definitions:

Concrete Operational

A stage in Jean Piaget's theory of cognitive development during which children gain the mental operations that enable them to think logically about concrete events.

Cognitive Development

The process of growth and change in intellectual capabilities that occurs from infancy, through childhood, and onto adulthood.

Erik Erikson

A psychoanalyst known for his theory on the psychosocial development of human beings, encompassing eight stages from infancy to adulthood.

Sigmund Freud

An Austrian neurologist best known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.