If the Marginal Propensity to Consume Is

question 148

Multiple Choice

If the marginal propensity to consume is .9,then the marginal propensity to save must be:

• A) 1.
• B) .1.
• C) 1.1.
• D) .9.

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Definitions:

IFRS

The International Financial Reporting Standards are a set of accounting principles used internationally to ensure financial statements are comparable across international boundaries.

US GAAP

United States Generally Accepted Accounting Principles, which govern the preparation and reporting of financial statements in the U.S.

Prior Service Cost

Costs recognized when a pension plan is amended to increase benefits for employee service in prior periods, typically amortized over time.

Unrecognized Net Gain

A profit that has been realized but not yet recorded in the financial statements of a company.