Table 91 At Which Income Level Does Consumption Equal Income According to
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question 129

Multiple Choice

Table 9.1 $$\begin{array} { | l | c | } \hline \begin{array} { c } \text { Disposable Income } \\\text { (Billions of dollars per year) }\end{array} & \begin{array} { c } \text { Total Consumption } \\\text { (Billions of dollars per year) }\end{array} \\\hline \text { \$0 } & \$ 50 \\\hline 200 & 210 \\\hline\end{array}$$ At which income level does consumption equal income according to the information provided in Table 9.1?

• A)$150 billion.
• B)$600 billion.
• C)$900 billion.
• D)$250 billion.

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Definitions:

Journal Entry

A record in the books of accounts that captures the financial transactions of a business.

Discount on Bonds Payable

The disparity between a bond's nominal value and its market price, occurring when the bond is traded at a price below its nominal value.

Straight-line Amortization

An accounting method of incrementally reducing the cost value of an intangible asset over its useful life.

Interest Payment

The payment a borrower makes to a lender as compensation for the use of borrowed money.