The Table Shows a Consumption Schedule

question 190

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Disposable Income } & \text { Consumption } \\\hline \$ 300 & \$ 310 \\\hline 350 & 340 \\\hline 400 & 370 \\\hline 450 & 400 \\\hline 500 & 430 \\\hline\end{array}$$ The table shows a consumption schedule. The marginal propensity to consume is

• A) 0.80.
• B) 0.75.
• C) 0.60.
• D) 0.40.

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Definitions:

Project

A temporary endeavor undertaken to create a unique product, service, or result with defined objectives and constraints.

WACC

Weighted Average Cost of Capital; a measure used to calculate the average cost of a company's financing sources, including equity and debt.

NPV

Net Present Value; a calculation that compares the present value of cash inflows with the present value of cash outflows over a period of time to assess profitability.

Cash Flow

The total amount of money being transferred into and out of a business, particularly affecting liquidity.