Match These Terms to Their Correct Definition

question 194

Multiple Choice

Match these terms to their correct definition.
-Sum of the dividend payout and stock repurchase payout ratios.

• A)Accounts receivable turnover ratio
• B)Cash ratio
• C)Gross profit percentage
• D)Inventory turnover ratio
• E)Net profit margin percentage
• F)Operating margin percentage
• G)Quick ratio
• H)Total payout ratio

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Definitions:

Disposable Income

Households' budget for spending and savings after the necessary income taxes have been deducted.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as income falls.

Disposable Income

Net resources for spending and saving available to households after subtracting income taxes.

MPC

MPC, or Marginal Propensity to Consume, is the proportion of additional income that an individual spends on consumption.