Exhibit 8-3 Consumption  Function in Exhibit 8-3, What Is

question 221

Multiple Choice

Exhibit 8-3 Consumption  Function In Exhibit 8-3, what is the households' marginal propensity to consume (MPC) ?

• A)0.50.
• B)0.60.
• C)0.75.
• D)0.80.

---

Definitions:

Cash Flow Information

provides details about a company's cash inflows and outflows over a period.

Direct Method

A cash flow statement presentation technique that lists specific types of cash inflow and outflow transactions directly.

Indirect Method

A method for calculating cash flows in which net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Cash Equivalent

Short-term, highly liquid investments that are easily convertible to known amounts of cash and very close to their maturity.