An Increase in Investment in the Present Would Mean That

question 39

Multiple Choice

An increase in investment in the present would mean that _____ in the future.

• A)both income and consumption will remain unchanged
• B)both income and consumption will increase
• C)consumption will fall but income will increase
• D)income will fall but consumption will increase

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Definitions:

Profit/(Loss) Realized

The actual gain or loss generated from completing a transaction.

Intercompany Sale

The sale of goods or services between divisions or subsidiaries within the same parent company.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.

Effective Tax Rate

The average percentage that companies or individuals pay in taxes on their total income.