The Figure Given Below Shows the Consumption Functions of an Economy

question 92

Multiple Choice

The figure given below shows the consumption functions of an economy.
Figure 9.4

-Refer to Figure 9.4. The shift of the consumption function from C₁ to C₂ has caused autonomous saving to:

• A) decrease by the distance between H and B.
• B) increase by the distance between C and B.
• C) decrease by the distance between C and B.
• D) increase by the distance between H and G.
• E) decrease by the distance between D and E.

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Definitions:

Preferred Shareholders

Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets in the event of liquidation, but typically without voting rights.

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.