If Disposable Income Decreases During a Recession, There Is

question 101

Multiple Choice

If disposable income decreases during a recession, there is

• A) a downward shift in the consumption function.
• B) movement downward along the consumption function.
• C) no change in consumption expenditures.
• D) an upward shift in the consumption function.
• E) movement upward along the consumption function.

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Definitions:

Net Proceeds

The amount of money made on a stock trade after the brokerage fees are paid.

Broker Fee

A flat fee or commission that a stockbroker charges for trade stocks.

Fractional Share

A portion of a single share of a company, allowing investment in smaller amounts than the full share price.

Capital Gain

The profit from the sale of assets such as stocks, bonds, or real estate, which exceeds the purchase price.