A Movement Along the Consumption Function to Higher Levels of Consumption

question 264

Multiple Choice

A movement along the consumption function to higher levels of consumption expenditure arises because

• A) the level of disposable income increases.
• B) household wealth rises.
• C) the level of disposable income decreases.
• D) the level of desired saving rises.

---

Definitions:

Adequate Financing

Having sufficient funds or capital to cover the startup, operation, or expansion of a business.

Feedforward Control

A management technique that involves the collection and analysis of performance data before a task is undertaken, with the aim of preventing future problems.

Controlling

The management function aimed at ensuring actual activities conform to planned activities through monitoring, evaluating, and taking corrective actions.

Controlling

The management function that involves monitoring performance, comparing it with goals, and correcting any significant deviations.