Which of the Following Will Cause a Direct Increase in Consumption

question 50

Multiple Choice

Which of the following will cause a direct increase in consumption spending?

• A)an increase in planned investment
• B)an increase in government spending
• C)an increase in disposable income
• D)a decrease in net export spending

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Definitions:

Expiration Date

The last day on which an option or futures contract is valid or can be exercised.

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price within a specific timeframe.

Exercised

In financial terms, refers to the act of utilizing the rights provided by a derivative contract, such as executing a buy or sell order under the terms of an option contract.

American Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a certain time period.