-In the Above Table, There Are No Taxes (So That

question 424

Multiple Choice

-In the above table, there are no taxes (so that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is

• A) -750.
• B) -0.75.
• C) 0.75.
• D) 0.80.

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Definitions:

Return on Assets

Return on assets (ROA) is a financial ratio that indicates how profitable a company is relative to its total assets, calculated by dividing net income by total assets.

Multiple Step Income Statement

An income statement that separates operational revenues and expenses from non-operational ones to calculate net income.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to prepare financial statements.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of core operations before overhead costs.