-In the Above Figure, If Household Consumption Is Positively Related

question 115

Multiple Choice

-In the above figure, if household consumption is positively related to household income, then an increase in household income will

• A)make the line positively sloped.
• B)cause a movement along the line.
• C)shift the line rightward.
• D)shift the line leftward.

---

Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest of shareholders in a company.

Financial Statements

Consolidated reports detailing the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.

Inventory

The goods and materials a business holds for the ultimate purpose of resale or processing.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.