The Slope of the Consumption Function Equals _______ While the Slope

question 110

Multiple Choice

The slope of the consumption function equals _______ while the slope of the 45 degree line equals _______.

• A) one; zero
• B) the MPC; zero
• C) the MPC; one.
• D) MPS; MPC

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Definitions:

Asset

Items of value owned by a company, including tangible and intangible resources, that can be converted into cash.

Second-Year Depreciation

The depreciation expense allocated in the second year of an asset's useful life, considering the chosen depreciation method.

Straight-Line Method

A depreciation method applying an equal expense rate each year over the useful life of the property.

Estimated Residual Value

The anticipated market value of an asset at the end of its useful life, used in calculating depreciation.