If the Simple Spending Multiplier Is 10,the Marginal Propensity to Save

question 105

Multiple Choice

If the simple spending multiplier is 10,the marginal propensity to save (MPS) is:

• A)1/10.
• B)9/10.
• C)1/9.
• D)10/9.
• E)9.

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Definitions:

Unrealised Profit

Profit that has been generated but not yet realized through a transaction, such as an increase in the value of an investment that hasn't been sold.

Unrealised Profits

Profits that have been accumulated on paper through asset appreciation or investments but have not been converted into cash through sales.

Intragroup Sale

Sales transactions that occur between entities within the same group or parent company, often used in the context of transfer pricing and consolidation adjustments.

Consolidation

The process of combining the financial statements of two or more entities into one, typically within a group controlled by a parent company.