The Expenditure Line

question 142

Multiple Choice

The expenditure line

• A)is steeper than the 45-degree line.
• B)slopes upward because consumption depends positively on income.
• C)slopes upward because the MPC is less than 1.
• D)slopes upward because consumption and investment depend positively on income.
• E)shows the relationship between consumption spending and income.

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Definitions:

Human Resource Management

A function in organizations designed to maximize employee performance in service of an employer's strategic objectives.

Accounting Sales

The recorded revenue from goods or services sold or provided to customers, reflecting income generated by a business.

Subsidiary Ledger

A detailed ledger that contains all the transaction information of a specific account, which then summarizes to a general ledger.

Cash Payments Journal

A specialized accounting journal used to record all payments made by a business, including expenses and purchases.