Which of These Will NOT Cause an Increase in the Consumption

question 5

Multiple Choice

Which of these will NOT cause an increase in the consumption schedule?

• A) an increase in the wealth of a family
• B) an increase in the price of gas
• C) an increase in household debt
• D) a decrease in one's personal taxes

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Definitions:

Par Value

Par value refers to the nominal or face value of a bond, stock, or coupon as stated by the issuer, and may have legal implications for capital stock.

Common Stock

A type of equity security that represents ownership in a corporation and entitles its holders to vote on corporate matters and receive dividends.

Journal Entries

The records of financial transactions in the accounting system that document the effects on accounts in a double-entry bookkeeping system.

Dividend Yield

A metric showing the annual dividends a company distributes in comparison to its stock price.