A Laptop Computer That Is Purchased by an Accounting Firm

question 178

Multiple Choice

A laptop computer that is purchased by an accounting firm is considered to be:

• A) consumption spending.
• B) investment spending.
• C) private saving.
• D) a pretax dividend.

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Definitions:

Unemployment

The situation in which individuals who are capable of working and are seeking work are unable to find employment.

Marginal Propensity

The ratio of change in an economic variable (such as consumption) that occurs with a change in another variable (such as income).

Investment Accelerator

The concept that suggests investment spending in an economy may increase due to growth in overall economic activity, boosting further growth.

Aggregate Demand

Total expression of need for goods and services within an economic environment, anchored at a specific total price level across a designated duration.