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

question 180

Multiple Choice

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

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

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decline in the asset's value over time.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Working Capital

The balance sheet accounts associated with day-to-day operating activities. Gross working capital is generally defined as current assets and net working capital as current assets minus current liabilities.

Accounts Receivable

Money owed to a company by its customers for goods or services already delivered but not yet paid for.