Along the Aggregate Consumption Function,an Increase in Income Will

question 128

Multiple Choice

Along the aggregate consumption function,an increase in income will

• A)cause autonomous consumption to rise
• B)shift the consumption function upward
• C)cause a corresponding downward shift of the saving function
• D)cause movement along the given consumption function
• E)shift the consumption function downward

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Definitions:

Current Ratio

A financial liquidity ratio that compares a company's current assets to its current liabilities.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects on its credit sales by comparing net credit sales with the average accounts receivable over a period.

Return On Total Assets

A financial ratio that measures a company's net income relative to its total assets, indicating how efficiently management is using its assets to generate profit.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund day-to-day operations.