-Based Upon the Above Table, the MPC for the Consumption

question 118

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Disposable income } \\\text { (billions of dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { exp enditure } \\\text { (billions of dollars) }\end{array} \\\hline 400 & 450 \\\hline 600 & 600 \\\hline 800 & 750 \\\hline 1000 & 900 \\\hline 1200 & 1050 \\\hline\end{array}$$
-Based upon the above table, the MPC for the consumption function is

• A) constant at 0.75.
• B) increasing as income rises.
• C) constant at 0.25.
• D) equal to 1.0 at $600 billion.

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Definitions:

Common Stock

Equity securities that represent ownership in a company, entitling holders to vote on corporate matters and receive dividends.

Last-in First-out (LIFO)

Last-in First-out (LIFO) is an inventory valuation method where the most recently produced or acquired items are sold first, leading to older stock being recorded in inventory.

Development Costs

Development costs are the expenses associated with the research and development of new products or services, aiming to improve or create new offerings.