Use the Following to Answer Questions

question 79

Multiple Choice

Use the following to answer questions .
Exhibit: Consumption Functions
Figure 13-3
-(Exhibit: Consumption Functions) Which of the following statements is false?

• A) At points j, k, and m, consumers spend all their disposable income on consumption.
• B) The amount of consumption is positive even when disposable income equals zero.
• C) The slope of the consumption function is the marginal propensity to consume.
• D) At points j, k, and m, the marginal propensity to save equals zero.

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Definitions:

Discount Period

The time frame within which a payment is made early enough to receive a discount for early payment.

Invoice Payment

The process of paying off the amount that is stated on an invoice, which is a bill for products or services provided.

Perpetual Inventory System

A system of inventory accounting that immediately logs inventory sales or purchases using computerized point-of-sale systems and software for managing enterprise assets.

Purchases Returns

Transactions involving the return of goods previously bought to the seller, typically due to defects or issues.