If the Marginal Propensity to Consume (MPC) Is 0

question 78

Multiple Choice

If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP $200 billion, then by how much would they have to change taxes?

• A) − $240 million.
• B) − $200 million.
• C) − $180 million.
• D) − $50 million.

Identify the correct recording of realized and unrealized gains or losses from sale of subsidiary shares.

Calculate consolidated equipment account balance post-acquisition.

Differentiate between acceptable and unacceptable methods for sale of subsidiary shares.

Compute consolidated stockholders' equity after acquisition.