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The Figure Above Shows a Nation's Consumption Function

question 12

Multiple Choice

  The figure above shows a nation's consumption function. If disposable income is $2 trillion, then the MPC is  <sub>--------------------</sub> and saving is  <sub>--------------------</sub>. A) positive; positive B) negative; positive C) positive; negative D) negative; negative E) positive; zero
The figure above shows a nation's consumption function. If disposable income is $2 trillion, then the MPC is -------------------- and saving is --------------------.


Definitions:

Utility Calculation

A method for assessing the value or efficacy of a service or product by measuring its usefulness and impact.

ROI

ROI, or Return on Investment, is a financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Net Utility

The overall value or satisfaction gained from consuming a product or service, after subtracting the costs associated with its consumption.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

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