Financial Planning Models ________

question 185

Multiple Choice

Financial planning models ________.

• A) are not used in the budgeting process
• B) are not useful for sensitivity analysis
• C) are mathematical representations of the relationships affecting the budget process
• D) are used for nonfinancial aspects of budgeting

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the expenditures needed to meet basic needs.

Disposable Income

The available sum for households to allocate on spending and saving post the deduction of income taxes.

Consumption

The use of goods and services by households, including both durable and non-durable goods.

Disposable Income

Fiscal resources for households' utilization in spending and saving post income tax processing.