The Part of Consumption That Is Independent of Disposable Income

question 85

Multiple Choice

The part of consumption that is independent of disposable income is called

• A) automatic consumption.
• B) fixed consumption.
• C) personal consumption.
• D) autonomous consumption.

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Definitions:

Cash Payments

Cash payments refer to transactions where cash is used to settle the amount owed for goods or services.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, usually one year.

Spreadsheet Method

A technique utilizing spreadsheet software to organize, analyze, and manage data, often for budgeting, planning, and decision-making purposes.

Indirect Method

The indirect method is a way to calculate cash flow from operations by adjusting net income for changes in non-cash accounts and non-operating items.