When Consumption Expenditure Is ________ Disposable Income,saving Is ________

question 97

Multiple Choice

When consumption expenditure is ________ disposable income,saving is ________.

• A)greater than;positive
• B)less than;negative
• C)equal to;negative
• D)equal to;positive
• E)less than;positive

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Definitions:

Missing Items

Refers to items that are unaccounted for due to error, theft, or misplacement, impacting inventory counts and financial statements.

Residual Income

The amount of income that an entity has after all personal debts and expenses, including the cost of capital, have been paid.

Acceptable Return

The minimum profit or benefit expected by an investor for the risk taken on an investment.

Income from Operations

Financial performance metric that shows earnings from normal business activities, excluding effects of interest and taxes.