The Marginal Propensity to Consume (MPC) Is Calculated by Which

question 179

Multiple Choice

The marginal propensity to consume (MPC) is calculated by which formula?

• A)MPC = change in DI divided by change in C
• B)MPC = change in GDP divided by change in DI
• C)MPC = change in C divided by change in DI
• D)MPC = change in C divided by change in GDP

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Definitions:

Tax Purposes

Considerations or actions taken within financial contexts to optimize tax liability, including strategies for deductions, credits, and structuring transactions.

CCA Rate

Refers to the Capital Cost Allowance rate, which is used in taxation to represent the annual depreciation expense of a physical asset's cost.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Salvage Value

The estimated resale value of an asset at the end of its useful life, accounting for depreciation.