If Consumption Were a Direct Function of Disposable Income, How

question 4

Essay

If consumption were a direct function of disposable income, how would a decrease in personal taxes or an increase in transfer payments affect consumption?
​

---

Definitions:

Conflict Theorist

A social scientist who views societal structures and relationships through the lens of conflict and power dynamics, often focusing on issues like inequality and social change.

Strengths and Weaknesses

An assessment framework used to evaluate the positive aspects and limitations of a concept, approach, or entity.

Political and Economic System

The organized set of principles and structures that dictate how a society is governed and how its economic activities are conducted.

Equality

The state of being equal, especially in status, rights, and opportunities.