Economists Expect the Relationship Between Consumption and Disposable Income to Be

question 142

Multiple Choice

Economists expect the relationship between consumption and disposable income to be

• A)unpredictable.
• B)transitory.
• C)fixed.
• D)inverse
• E)stable.

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Definitions:

Profitability

Profitability measures the degree to which a business or activity yields profit or financial gain.

Liquidity Ratios

Financial metrics used to determine an entity's ability to pay off its short-term debts obligations.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Solvency Ratios

Financial ratios used to assess a company's ability to meet its long-term debts and obligations, indicating financial health and stability.