The Slope of the Consumption Schedule Between Two Points on the Schedule

question 8

Multiple Choice

The slope of the consumption schedule between two points on the schedule is:

• A) The ratio of the change in consumption to the change in disposable income between those two points
• B) The ratio of the change in disposable income over the change in consumption between those two points
• C) Equivalent to one plus the marginal propensity to save
• D) Equivalent to the average propensity to consume

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Definitions:

Predisposition

A natural inclination or tendency to behave in a certain way or to develop a particular condition based on genetic or environmental factors.

Mental Disorder

A condition characterized by disturbances in a person's thinking, emotional regulation, or behavior, causing distress or impaired function.

Maladaptive

Descriptive of actions or behaviors that are counterproductive to situational demands, impairing the ability to effectively adjust or cope.

Personal Distress

A negative emotional response to the pain or suffering of others, focused more on self-experienced emotions than on the situation of the person in distress.