Refer to the Diagram Given Below

question 76

Multiple Choice

Refer to the diagram given below. The diagram given above shows consumption schedules.As income rises, the marginal propensity to consume remains constant for:

• A)none of the consumption schedules.
• B)only C₃.
• C)only C₁, C₂, and C₃.
• D)only C₄.

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Definitions:

Internal Rate Of Return (IRR)

The discount rate that makes the NPV of an investment zero.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in identical yearly payments.

Minimum Rate Of Return

The lowest acceptable return on investment, beyond which investment options are not considered.

Mutually Exclusive

Situations or events that cannot occur at the same time, meaning the occurrence of one event prevents the occurrence of the other.