Contingency Plans Are Used If the Project Cannot Be Completed

question 44

True/False

Contingency plans are used if the project cannot be completed as originally planned so an alternate destination needs to be sought.

---

Definitions:

MPC

Marginal Propensity to Consume, which is the proportion of any additional income that is spent on consumption rather than being saved.

Savings

Money set aside typically in financial instruments, representing deferred consumption or for future use.

Disposable Income

The economic provision for households' saving and spending activities post income tax calculations.

Saving

Income that is not expended on immediate consumption but rather reserved for investing or future purposes.