If,in the Aggregate,consumers Spend 75 Cents of Every Extra Dollar

question 7

Multiple Choice

If,in the aggregate,consumers spend 75 cents of every extra dollar received,then the

• A)APC is 1.25.
• B)APC is 0.75.
• C)MPC is 0.75.
• D)MPS is 0.75.

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Definitions:

Expected Return

The predicted amount of gain or loss an investment is anticipated to generate, based on historical performance or statistical analysis.

Economic Activity

The total amount of production, distribution, and consumption of goods and services in an economy.

Standard Deviation

A statistical measure of the dispersion of a set of data from its mean, often used to quantify the risk of a financial instrument.

Variance

A measure of how much a set of numbers differ from their average value.