The Increase in Aggregate Planned Expenditures Divided by the Change

question 52

Multiple Choice

The increase in aggregate planned expenditures divided by the change in national income that brought it about is called the

• A)average propensity to consume.
• B)average propensity to save.
• C)marginal propensity to spend.
• D)marginal propensity to save.
• E)marginal propensity to consume.

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Definitions:

Long-Term Liabilities

Financial obligations of a company that are due beyond one year from the balance sheet date.

Convertible Debt

A type of bond that can be converted into a predetermined number of shares of the issuing company.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines for preparing financial statements.

Proceeds

refer to the total amount of money received from transactions, often associated with the sale of goods, services, or assets.