The Marginal Propensity to Consume (MPC) Is Calculated As

question 10

Multiple Choice

The marginal propensity to consume (MPC) is calculated as:

• A) the change in consumption divided by the change in disposable income.
• B) total income divided by total consumption.
• C) total consumption divided by the change in disposable income.
• D) the change in consumption divided by total disposable income.

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Definitions:

Goodwill

An intangible asset that represents the excess value paid over the fair market value of an acquired company's net assets.

Equity Method

A financial recording method where investments in other firms are first noted at their purchase price and later modified to reflect the investor's portion of the investee's earnings or losses.

Common Stock

Equity ownership in a corporation, giving holders voting rights and a share of the company’s profits through dividends.

Goodwill

An intangible asset representing the value of a company's brand, customer relationships, and other non-physical assets that contribute to earnings.