FIGURE 21-2 Refer to Figure 21-2

question 125

Multiple Choice

FIGURE 21-2 Refer to Figure 21-2.The slope of the consumption function in the figure is equal to

• A)the marginal propensity to consume.
• B)the average propensity to consume.
• C)the marginal propensity to save.
• D)the average propensity to save.
• E)the slope of the 45-degree line.

---

Definitions:

Net Present Value

The calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.

Cash Inflows

Any money coming into a company from various sources, including sales, financing, and investments.

Investment Proposal

A plan or suggestion put forward for consideration by others, typically involving expenditure on assets in expectation of achieving returns.

Simple Rate of Return

The simple rate of return is a financial metric that calculates the percentage increase or decrease in value of an investment over a specific period.