If the Consumption Function Is Expressed as C = a

question 80

Multiple Choice

If the consumption function is expressed as C = a + mpc × Y_D,then "a" represents

• A)autonomous consumer expenditure.
• B)the marginal propensity to consume.
• C)the expenditure multiplier.
• D)disposable income.

Understand the foundations and importance of ethics in business and accounting.

Comprehend the impact of technology on accounting processes.

Grasp the basic principles and assumptions underlying financial accounting.

Identify the different entities in business and their accounting implications.

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Definitions:

Asset Account

An account that records the value of resources owned by an entity which have economic value and can provide future benefits.

Capital

Financial resources or assets owned by a business or individual used for creating wealth or generating income.

Net Sales

The final sales figure a company reports, after deducting returns, discounts, and compensations for damaged or missing products from its total sales.

Gross Sales

The total sales revenue of a company without deducting any sales returns, allowances, or discounts.