The Disposable Income (DI) and Consumption (C) Schedules Are for

question 229

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Disposable Income } & \text { Consumption } \\\hline \$ 0 & \$ 8 \\\hline 80 & 80 \\\hline 160 & 152 \\\hline 240 & 224 \\\hline 320 & 296 \\\hline 400 & 368 \\\hline\end{array}$$ The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All ?gures are in billions of dollars. The marginal propensity to save in this economy is

• A) 0.1.
• B) 0.72.
• C) 0.8.
• D) 0.9.

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Definitions:

Non-Business Organizations

Entities that operate for purposes other than making a profit, such as charities, educational institutions, and non-profit organizations.

Accounting Policies

The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.

Private Enterprises

Businesses which are owned by private individuals or groups, not by the state or public sectors.

Accounting Standards

are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP).