Exhibit 8-6 Aggregate Expenditures Function as Shown in Exhibit

question 108

Multiple Choice

Exhibit 8-6 Aggregate expenditures function As shown in Exhibit 8-6, the marginal propensity to save (MPS) is:

• A)0.33.
• B)0.50.
• C)0.67.
• D)0.75.

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Definitions:

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been deducted, often referred to as the bottom line.

Earnings Per Share

A financial metric that shows the portion of a company's profit allocated to each outstanding share of common stock.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Market Price

Market price is the current value at which an asset or service can be bought or sold in a marketplace.