Assume the Economy's Consumption and Saving Schedules Simultaneously Shift Downward

question 28

Multiple Choice

Assume the economy's consumption and saving schedules simultaneously shift downward.This must be the result of:

• A)an increase in disposable income.
• B)an increase in household wealth.
• C)the expectation of a recession.
• D)an increase in personal taxes

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Definitions:

Favorable

A term used in accounting and finance to describe outcomes or variances that are better than anticipated, indicating a positive performance against the budget or forecast.

Unfavorable

A term used to describe a variance or outcome that results in a worse financial position than expected or budgeted.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected (or standard) labor costs, often due to paying a higher or lower wage rate than planned.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead allocated based on activity levels.