Which of the Following Will Cause a Direct Increase in Consumption

question 248

Multiple Choice

Which of the following will cause a direct increase in consumption spending?

• A)an increase in planned investment
• B)an increase in government spending
• C)an increase in disposable income
• D)a decrease in net export spending
• E)an increase in income taxes

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Definitions:

Discount Period

A specified period within which a buyer can pay less than the full amount due by taking advantage of a discount offered by the seller.

Customer

An individual or entity that purchases goods or services from a business.

Sales Returns and Allowances

Concessions made to customers for returned merchandise or unsatisfactory goods, reducing sales revenue.

Office Supplies

Items used in offices for daily operations and tasks, including stationery, pens, paper, and other small equipment, often classified as current assets in accounting.