Which of the Following Is a Characteristic of Consumption According

question 151

Multiple Choice

Which of the following is a characteristic of consumption according to Keynes?

• A) consumption depends on disposable income
• B) consumption and disposable income have a direct relationship
• C) when disposable income changes,consumption changes by less
• D) a and c
• E) a,b,and c

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Definitions:

Dividends

A portion of a company's earnings distributed to shareholders, often in the form of cash or additional stock.

Internal Revenue Code

The comprehensive set of tax laws in the United States, governed by the Internal Revenue Service (IRS), that dictates federal tax obligations.

Federal Income Taxes

Taxes imposed by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Corporations

Legal entities that are separate and distinct from their owners, with the ability to own assets, incur liabilities, and sell stock.