A Decrease in the Value of the Simple Multiplier Can

question 120

Multiple Choice

A decrease in the value of the simple multiplier can be caused by

• A)a decrease in the net tax rate.
• B)a decrease in the marginal propensity to import.
• C)an increase in the marginal propensity to consume.
• D)an increase in the marginal propensity to save.
• E)an increase in the marginal propensity to spend.

Comprehend the impact of sales discounts, returns, and allowances on financial statements.

Interpret and calculate the effects of credit terms on financial decisions.

Recognize the procedures and implications of recording bad debt expense.

Understand the principle of revenue recognition and its application to FOB shipping and destination.

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