If Consumption Is $25 000 When Income Is $21 000

question 8

Multiple Choice

If consumption is $25 000 when income is $21 000, and consumption increases to $25 900 when income increases to $22 000, the MPC is:

• A) 1.11
• B) 0.90
• C) 0.84
• D) 0.59

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Definitions:

Economic Lives

The duration over which an asset is expected to be economically useful to its owner.

Projects

Specific tasks or programs undertaken to create value, achieve an objective or solve a problem, often within a defined scope and timeline.

Balance Due

The outstanding amount of money owed by a debtor to a creditor, which remains unpaid after any initial payments or deductions have been applied.

Current Lease

An active leasing agreement specifying the terms under which a lessee occupies or utilizes the leased asset.