Increasing the Amount of Consumption Spending and Reducing the Amount

question 154

Multiple Choice

Increasing the amount of consumption spending and reducing the amount of savings ________ investment expenditures, and ________ long-run economic growth in the economy.

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases
• E)increases; holds constant

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Definitions:

Accounts Receivable

Amounts payable to a firm by its buyers for items or services that have been supplied but are still unpaid.

Capital Structure

Capital Structure is the mix of debt and equity financing a company uses to fund its operations and growth.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be repaid at a later date, usually with interest.

Equity

The owner's interest in an asset or business, representing the residual value after liabilities are deducted from assets.