The Marginal Propensity to Consume Is Always

question 132

Multiple Choice

The marginal propensity to consume is always

• A) greater than 1
• B) between 0 and 1
• C) less than 0
• D) between 0 and -1
• E) between 0 and 0.6

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Definitions:

Employer Only

A term that may refer to expenses or contributions that are solely the responsibility of the employer and not shared with employees.

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.

Estimable

Capable of being reasonably estimated or calculated, often used in the context of accounting to refer to expenses or losses.

Reasonably Possible

A term used in accounting and law to describe an outcome that, while not certain, is more than a mere possibility and should be considered or disclosed.