(Table) the Following Table Shows Data on Consumption at Various

question 206

Multiple Choice

(Table) The following table shows data on consumption at various levels of income. The value of the MPC is

• A) 0.25.
• B) 0.75.
• C) 0.80.
• D) 0.90.

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Definitions:

Net Income

The remaining profit for a company after deducting taxes and expenses from the revenue.

Consolidation Entry

A journal entry used in the preparation of consolidated financial statements to eliminate intercompany transactions and balances.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Equity Method

An accounting technique used to record investments in other companies, recognizing income based on the investee's profit or loss.