If the Consumption Function Is C = 1,000 + 0

question 31

Multiple Choice

If the consumption function is C = 1,000 + 0.87Y,then what is the marginal propensity to consume?

• A)1,000
• B)0.87
• C)0.13
• D)870
• E)None of these

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Definitions:

Earnings per Share

A measure of a company's profitability that indicates how much money shareholders would receive for each share owned, calculated by dividing net income by the number of outstanding shares.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge in the income statement.

Analytical Measures

Various calculations and metrics used to assess the performance, health, and financial status of a business.

Industry Type

A classification that categorizes companies and business activities into specific sectors based on similar production processes, products, or services.