Identify the Correct Statement

question 75

Multiple Choice

Identify the correct statement.

• A)Autonomous consumption equals saving when disposable income is equal to zero.
• B)Saving is equal to consumption when autonomous consumption is zero.
• C)The savings function always has a positive intercept when autonomous consumption is positive.
• D)The consumption and saving function intersect each other when disposable income is zero.
• E)Autonomous consumption is positive even when disposable income is zero.

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Definitions:

Accommodation Indorser

A party who endorses a negotiable instrument for the purpose of lending their credit to another party without direct benefit.

Contractual Liability

Contractual liability involves obligations that a party has agreed to assume in a contract, making them legally responsible for fulfilling the terms of the agreement.

Transfer Warranty

A guarantee in legal documents, especially in sales of goods, assuring the recipient that the transferor has valid title and that the transfer is rightful.

Presentment Warranty

Assurance given in a transaction that certain facts are true as of the time of the deal, generally related to financial instruments.