If Autonomous Consumption Decreases,then

question 19

Multiple Choice

If autonomous consumption decreases,then

• A)The AD curve will shift to the right.
• B)The AD curve will shift to the left.
• C)There will be a movement to the left along the AD curve.
• D)The AD curve will not be affecteD.In this case,the autonomous consumption category falls,so the AD curve would decrease,thereby shifting to the left.

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Definitions:

Accounting Equation

The fundamental principle of accounting that states that Assets = Liabilities + Equity, providing the basis for double-entry bookkeeping.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, also known as shareholder's equity.

Assets

Resources owned by a business which are expected to provide future economic benefits.

Landlord

An owner of property, such as land or buildings, who leases or rents it to another party, known as a tenant.