A Consumer Is a Lender If

question 34

Multiple Choice

A consumer is a lender if

• A) optimum current consumption is less than current disposable income.
• B) optimum current consumption is greater than current disposable income.
• C) current disposable income is greater than future disposable income.
• D) the consumer's indifference curves are relatively flat.
• E) the consumer's indifference curves are negatively sloped.

---

Definitions:

Inventory Turnover

A metric that measures how many times a company's inventory is sold and replaced over a specified period.

Total Current Assets

The sum of all assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Common Stock

A type of security representing ownership in a corporation, giving holders a share of the company’s profits via dividends.

Additional Assets

Assets acquired by a company beyond its existing assets, often to expand operations or diversify holdings.