The Slope of the Linear Consumption Function Represents Autonomous Consumption

question 20

True/False

The slope of the linear consumption function represents autonomous consumption expenditures.

---

Definitions:

Useful Life

The estimated period over which an asset is expected to be utilizable or productive before it is fully depreciated.

Straight-Line

A method of calculating depreciation or amortization by evenly distributing the cost over an asset's useful life.

Double-Declining-Balance

A method of accelerated depreciation where the asset's book value is decreased at double the rate of straight-line depreciation.

Units-Of-Activity

A depreciation method that allocates expense based on the actual usage or activity level of the asset.