A Decrease in Net Wealth Will _____

question 143

Multiple Choice

A decrease in net wealth will _____.

• A)shift the consumption function downward
• B)make the consumption function steeper
• C)cause an upward movement along the consumption function
• D)cause a downward movement along the consumption function
• E)make the consumption function flatter

---

Definitions:

NPV

Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of all expected future cash flows minus the initial investment cost.

Break-even Points

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Cash Break-even

The point at which a business's cash expenses equal its cash revenues, resulting in no net cash flow.

Accounting Break-even

The point at which total revenues equal total expenses, indicating no profit or loss from operations.