A Change in Autonomous Consumption Causes a Movement Along the Aggregate

question 158

True/False

A change in autonomous consumption causes a movement along the aggregate expenditure line,while a change in consumption that depends on income causes a shift of the aggregate expenditure line.

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating leverage and financial health.

Days' Sales in Inventory

A financial metric that indicates the average time in days that a company takes to turn its inventory into sales.

Dividend Yield

A financial metric that measures the annual dividends issued by a company compared to the price of its shares.

Total Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales revenue.