-How Much Is Induced Consumption When Disposable Income Is $600

question 23

Multiple Choice

$$\begin{array} { c c } \text { Disposable Income } & \text { Consumption } \\0 & \$ 200 \text { billion } \\\$ 200 \text { billion } & 300 \text { billion } \\400 \text { billion } & 400 \text { billion } \\600 \text { billion } & 500 \text { billion } \\800 \text { billion } & 600 \text { billion }\end{array}$$
-How much is induced consumption when disposable income is $600 billion?

• A)0
• B)$200 billion
• C)$300 billion
• D)$400 billion
• E)$600 billion

Understand the concept of cash flows in capital budgeting and distinguish between cash outflows and non-cash charges.

Recognize the importance of the time value of money in evaluating capital expenditure proposals.

Understand the characteristics and applications of payback and accounting rate of return methods in capital budgeting.

Understand the concept and significance of investment allowances in the context of capital expenditures.