The Amount of Consumption That Would Take Place If Real

question 4

Multiple Choice

The amount of consumption that would take place if real GDP were zero is called

• A) induced consumption.
• B) exogenous consumption.
• C) autonomous consumption.
• D) break even consumption.

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Definitions:

Cash Receipts

The collection of money, including coins, notes, and electronic transactions, received by a business.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but not full control or ownership.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.