Refer to the Given Table, Which Illustrates the Multiplier Process

question 34

Multiple Choice

$\begin{array}{|l|c|c|c|}\hline & \text { Change in income } & \begin{array}{c}\text { Change in } \\\text { Consumption }\end{array} & \text { Change in Saving } \\\hline \text { Assumed Increase in Investment } & \$ 20 & \$ & \$ 4.00 \\\hline \text { Second Round } & \$ & \$ 12.80 & \$ \\\hline \text { All Other Rounds } & \$ & \$ 51.20 & \$ \\\hline \text { Totals } & \$ & \$ & \$ 20.00 \\\hline\end{array}$ Refer to the given table, which illustrates the multiplier process. The marginal propensity to consume is

• A) 0.5.
• B) 0.75.
• C) 0.8.
• D) 0.9.

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Definitions:

State Charter

is an official authorization for the creation and operation of a corporation, bank, or other organization within a specific state.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Reacquired

Refers to assets, such as stock or securities, that have been bought back by the corporation or entity that initially issued them.

Shares Outstanding

The total number of shares of stock that have been issued and are currently held by shareholders, including both public investors and restricted company insiders.