1. Explain the income effect.
define income effect

The income effect is the change in the consumption of goods based on income. This means consumers will generally spend more if they experience an increase in income, and they may spend less if their income drops. ... The marginal propensity to consume explains how consumers spend based on income.

we can argue that appeasement caused world war ii because it allowed hitler and the nazis to build germany’s military power until it was strong enough to fight a major war. additionally, appeasement emboldened germany, making it think the allies would never have the will to fight. this made germany much more aggressive and encouraged it to take the steps that eventually led to war.