A Consumption Function Shows a

question 301

Multiple Choice

A consumption function shows a

• A) negative (inverse) relationship between consumption expenditure and saving.
• B) positive (direct) relationship between consumption expenditure and the price level.
• C) negative (inverse) relationship between consumption expenditure and disposable income.
• D) positive (direct) relationship between consumption expenditure and disposable income.

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Definitions:

Note Dated

Indicates the specific date on which a note payable, receivable, or other legal financial document becomes effective.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Accounts Receivable

Amounts owed to a business by its customers from sales or services rendered on credit that are expected to be collected in cash.

Notes Receivable

Financial assets representing amounts owed to the holder by individuals or entities, usually evidenced by formal instruments of credit.