Induced Consumption Spending

question 7

Multiple Choice

Induced consumption spending

• A)represents consumption that is independent of income
• B)plus saving equals total consumption spending
• C)is positively related to disposable income
• D)is equal to autonomous consumption spending in equilibrium
• E)is the difference between autonomous consumption spending and disposable income

---

Definitions:

Blending Department

A specialized sector within a manufacturing operation where various inputs are combined to produce a homogeneous product.

Weighted-Average Method

An inventory costing method that averages the costs of goods available for sale to determine the cost of goods sold and ending inventory.

Conversion Costs

The costs incurred to convert raw materials into finished goods, typically including labor and overhead expenses.

Painting Department

A specific section within a manufacturing process focused on applying paint or coating to products.