If the Consumption Function Is C = 90 + 0

question 157

Multiple Choice

If the consumption function is C = 90 + 0.75y, then the marginal propensity to save is

• A) 0.25.
• B) 0.75.
• C) 67.5.
• D) 90.

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Definitions:

Unusual In Nature

Events or transactions that are not typical of the normal activities of the entity and thus not expected to recur frequently or regularly.

Pro Forma Earnings

Financial results excluding one-time events to give investors an idea of a company's normal earnings potential.

Basic EPS

Basic Earnings Per Share, a calculation that shows how much earnings are available to common stockholders, on a per-share basis.

Sustainable Earnings

Earnings resulting from the core operations of a company, expected to continue into the future without significant variation.