Which of the Following Would Shift the Consumption Schedule Downward

question 109

Multiple Choice

Which of the following would shift the consumption schedule downward?

• A) A decrease in real interest rates
• B) An increase in the value of financial assets
• C) An increase in the probability of a recession
• D) A decrease in disposable income

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Definitions:

Supplies

Items that are consumed during the operation of a business, such as office supplies, which are essential for day-to-day activities but not directly tied to the product being sold.

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods or services purchased on credit.

Withdrawals

Amounts of money taken out from a business by its owner(s) for personal use, not considered business expenses.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and income or decreases in assets and expenses are recorded.