-In the Figure Above, the Induced Consumption When Real GDP

question 288

Multiple Choice

-In the figure above, the induced consumption when real GDP is $6 trillion is

• A) $6 trillion.
• B) zero.
• C) $1 trillion.
• D) $4 trillion.

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Definitions:

Cash Discount

A reduction in the amount owed by a customer if payment is made within a specified period.

Prompt Payment

Timely payment for goods or services, often within a specified period to avoid penalties or to qualify for discounts.

Credit Sale

A transaction where the payment for goods or services is deferred, allowing the buyer to pay at a later date.

Firm Deposits

Deposits made by a firm that are typically fixed for a certain term or period, which might earn interest.