Refer to the Given Data

question 64

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Disposable Income } & \text { Consumption } \\\hline \$ 200 & \$ 205 \\\hline 225 & 225 \\\hline 250 & 245 \\\hline 275 & 265 \\\hline 300 & 285 \\\hline\end{array}$$ Refer to the given data. The marginal propensity to consume is

• A) 0.25.
• B) 0.75.
• C) 0.20.
• D) 0.80.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm's financial condition.

Entity's Profitability

A measure of how effectively a company generates profit from its operations, often evaluated through margins and return ratios.

Common Stock Account

An equity item on the balance sheet representing funds raised by issuing common shares.

Current Market Price

The price at which an asset or security is traded in the market at the present moment.