Aggregate Consumption Is

question 62

Multiple Choice

Aggregate consumption is

• A) positively related to savings.
• B) negatively related to real GDP.
• C) more volatile than aggregate income.
• D) less variable than aggregate income.
• E) more variable than savings.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, like cash, inventory, and receivables.

Total Assets

The sum of all resources owned by an entity, including both current and non-current assets, which can be used to generate value or meet obligations.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Leverage

The use of borrowed capital (debt) or other financial instruments to increase the potential return of an investment.