Figure 9-5 ​

question 32

Multiple Choice

Figure 9-5
​
-In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the multiplier is

• A)400,000.
• B)6.
• C)4.
• D)4/5.

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Definitions:

Marital Status

The legally defined relationship status of an individual in regard to marriage, such as single, married, divorced, or widowed.

Accounting Records

Documents and ledgers that contain the financial transactions and information of an entity, used to prepare financial statements.

Capital Section

Part of a company’s balance sheet that details the funding provided by owners and investors, including paid-in capital and retained earnings.

Revenue Section

Part of the income statement that details the amounts earned from normal business operations, excluding expenses to calculate gross profit.