The Line Described by the Consumption Function C = a

question 41

Multiple Choice

The line described by the consumption function C = a + bY_D will change its slope when

• A)The MPC changes.
• B)Autonomous consumption changes.
• C)Disposable income changes.
• D)The APS changes.

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Definitions:

Check Amount

The sum of money written on a check that the drawee is directed to pay.

Book Balance

Book balance refers to the balance of an account according to the accounting records, which may differ from the actual available balance.

Cash Overage

A situation where the actual cash on hand exceeds the expected amount, often due to accounting errors or unrecorded transactions.