Table 91 What Is the Marginal Propensity to Consume in Table 9

question 16

Multiple Choice

Table 9.1 $$\begin{array} { | l | c | } \hline \begin{array} { c } \text { Disposable Income } \\\text { (Billions of dollars per year) }\end{array} & \begin{array} { c } \text { Total Consumption } \\\text { (Billions of dollars per year) }\end{array} \\\hline \text { \$0 } & \$ 50 \\\hline 200 & 210 \\\hline\end{array}$$ What is the marginal propensity to consume in Table 9.1?

• A)0.15.
• B)0.80.
• C)0.85.
• D)0.90.

Calculate simple interest rates and understand their implications on loans and investments.

Understand the concept of economic profit in comparison to the return on investment and interest rates in the market.

Distinguish between households and firms in terms of supply and demand in the capital market.

Recognize the role and impact of retained earnings on corporate investment and shareholder value.

---

Definitions:

Judicial Lien

A court order that allows a creditor to satisfy a debt by seizing the property of the debtor.

Creditor

An entity (person or institution) that lends money or extends credit to another party, expecting to be repaid in the future.

Legal Action

A formal proceeding taken in a court of law to enforce or defend a right or seek a remedy.

Debtor's Property

Assets or properties owned by an individual or entity that owes money to creditors.