Which of the Following Is True of Induced Spending

question 158

Multiple Choice

Which of the following is true of induced spending?

• A)It rises as income increases.
• B)It is a function of income.
• C)It is zero when income is zero.
• D)It rises as income increase,it is a function of income,and it is zero when income is zero.

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Definitions:

Securitizations

The process of pooling various types of contractual debt such as mortgages or loans and selling their related cash flows to third party investors as securities.

Consolidate

The process of combining financial statements from different entities within a group to produce a single set of financial statements.

Control Over Receivables

The management and oversight practices applied to ensure efficient collection of amounts owed to a company.

Transferred Assets

Transferred Assets involve the movement of assets from one entity, location, or owner to another, often for the purpose of restructuring or mergers.