If Expectations of Future Income Become More Optimistic,which of the Following

question 168

Multiple Choice

If expectations of future income become more optimistic,which of the following would occur?

• A) Nothing would occur.
• B) The consumption-income line would shift downward.
• C) The consumption-income line would shift upward.
• D) There would be an rightward movement along the consumption-income line.
• E) There would be a leftward movement along the consumption-income line.

---

Definitions:

Bought Supplies

The action of acquiring supplies for a business or personal use, often recorded as an expense.

Equipment

Items of property intended for long-term use in the operation of a business, such as machinery and furniture.

Liability Account

An account representing an obligation or amount owed by a business to others, such as loans, accounts payable, or mortgages.