TABLE 5.1 Use the Table to Answer Following Question(s)

question 39

Multiple Choice

TABLE 5.1

Use the table to answer following question(s) .
-Refer to Table 5.1. The current spot rate of dollars per pound as quoted in a newspaper is ________ or ________.

• A) £1.4484/$; $0.6904/£
• B) $1.4481/£; £0.6906/$
• C) $1.4484/£; £0.6904/$
• D) £1.4487/$; $0.6903/£

---

Definitions:

Disposable Income

Income remaining for a person to spend or save after all taxes have been paid.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been taken out.

Consumption Spending

Expenditures by households on goods and services, excluding purchases of new housing, and a major component of GDP.

Consumption Function

A representation in economics indicating the relationship between total consumer expenditures and household income levels.