-The Above Table Has Data from the Nation of Atlantica

question 250

Multiple Choice

$$\begin{array} { c c } \begin{array} { c } \text { Disposable income } \\\text { (trillions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Consumption expenditure } \\\text { (trillions of 2005 dollars) }\end{array} \\\hline 0.0 & 1.5 \\2.0 & 3.0 \\4.0 & 4.5 \\6.0 & 6.0 \\8.0 & 7.5 \\\hline\end{array}$$
-The above table has data from the nation of Atlantica.Based on these data, the amount of autonomous consumption is

• A) $1.5 trillion.
• B) $1.0 trillion.
• C) $0.5 trillion.
• D) $7.5 trillion.
• E) $6.0 trillion.

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Definitions:

Bottom-Up Budgeting

A budgeting method where the budget is created with input from lower-level employees, leading up to a total company budget.

Extrapolation

The process of estimating, beyond the original observation range, the value of a variable on the basis of its relationship with another variable.

Previous Year's Budget

The financial plan containing income and expenditure for the prior year, used as a reference or benchmark for current financial planning.

Forecasting

The process of predicting future events, trends, and behaviors based on historical data and analysis.