If the Marginal Propensity to Consume (MPC) Is 0, the Simple

question 145

Multiple Choice

If the marginal propensity to consume (MPC) is 0, the simple multiplier is _____

• A) 0.
• B) 1.
• C) 10.
• D) 100.
• E) infinity.

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Definitions:

Unamortized Patent

A patent that has not yet been fully written off through amortization in a company's financial statements, representing an intangible asset still holding value.

Land Account

An account used in accounting to record the cost of land owned by a company. It includes the purchase price and any additional costs incurred to prepare the land for use.

Fair Value

The price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

Unamortized Patent

The portion of a patent's cost that has not yet been expensed in the income statement over the patent's useful life.