Which One of the Following Will Shift the Consumption Function

question 96

Multiple Choice

Which one of the following will shift the consumption function downward?

• A) an increase in disposable income
• B) a decrease in disposable income
• C) legislation making credit harder to obtain
• D) lower tax rates

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Definitions:

Terms Of Sale

Conditions agreed upon by the buyer and seller regarding the purchase, sale, and delivery of goods or services.

Credit

The provision of resources (such as money) by one party to another, with the expectation that the resources will be repaid, often with interest, at a later date.

Net 45

A payment term indicating that full payment is expected within 45 days from the invoice date.

Economic Order Quantity

A formula used to determine the most efficient quantity to order to minimize the costs associated with buying, holding and stockout.