-In the Above Figure, If Household Consumption Is Positively Related

question 180

Multiple Choice

-In the above figure, if household consumption is positively related to household income, then an increase in household income will

• A) shift the line rightward.
• B) shift the line leftward.
• C) make the line positively sloped.
• D) cause a movement along the line.

---

Definitions:

Budgetary Slack

Excess resources set within a budget to provide for uncertain events.

Operational Plans

Detailed plans that outline how a strategy will be implemented in terms of day-to-day operations.

Flexible Budget

A budget that shows the expected results of a responsibility center for several activity levels.

Static Budgets

Financial plans that remain unchanged over the budget period, irrespective of any variations in activity levels.