The Keynesian Consumption Function and the Theory of Intertemporal Choice

question 39

Multiple Choice

The Keynesian consumption function and the theory of intertemporal choice are consistent for households ________.

• A)with a binding budget constraint
• B)with little or no initial wealth
• C)whose consumption remains positive,even if income is zero
• D)whose consumption cannot exceed current income

---

Definitions:

Sternberg's Theory

This is Robert Sternberg's Triarchic Theory of Intelligence that suggests intelligence is comprised of three parts: analytical, creative, and practical intelligence.

Divergent Thinking

A cognitive process used to generate creative ideas by exploring many possible solutions and approaches in an open-ended way.

Concept

An abstract idea or a mental symbol that is typically used to denote a class of things, events, or phenomena.

Prototype

An original model or preliminary version of something from which other forms are developed or copied.