If Consumption Is Greater Than Disposable Income,it Follows That

question 71

Multiple Choice

If consumption is greater than disposable income,it follows that

• A) interest rates are rising.
• B) the budget deficit is shrinking.
• C) saving is negative.
• D) the multiplier is inoperative.
• E) none of the above

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed, typically due to a return or refund.

Debit Delivery Expense

An accounting entry that increases the expense account related to the cost incurred for delivering goods or services.

Purchases Discounts

An allowance given by the seller to the buyer for early payment or for buying in bulk, reducing the amount owed.

Settlement

The act of resolving a financial or legal obligation, often involving a mutual agreement between parties or payment completion.