An Increase in the Value of the Simple Multiplier Can

question 104

Multiple Choice

An increase in the value of the simple multiplier can be caused by

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

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Definitions:

Held-to-Maturity Debt Securities

Investments in debt securities that a company has the positive intent and ability to hold until maturity.

Financial Statements

Compiled reports that provide an overview of a business’s financial condition, including income statement, balance sheet, and cash flow statement.

Return on Total Assets

A profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.

Performance

Refers to the act of carrying out or accomplishing an action, task, or function.