Suppose That After Disposable Income Increases by $500 Billion,consumption Expenditures

question 19

Multiple Choice

Suppose that after disposable income increases by $500 billion,consumption expenditures increase by $450 billion.Therefore,the marginal propensity to consume would be

• A) 1.11
• B) 9.00
• C) 0.09
• D) 0.90
• E) 0.82

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Definitions:

General Factory

refers to the overall operations and activities that take place within a manufacturing facility, including production, maintenance, and storage.

Activity Rate

This is the frequency or intensity with which a specific process or activity is conducted within a given time frame.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, enhancing the accuracy of product costing.

Labor-Related

Pertaining to costs, activities, or issues directly connected with the workforce of a business, including wages, benefits, and productivity.