Table 9.2 -Refer to Table 9.2, Which Shows the Values of Different

question 170

Multiple Choice

Table 9.2

-Refer to Table 9.2, which shows the values of different components of aggregate expenditure of an economy. The marginal propensity to consume (MPC) equals _____

• A) 0.20 or 1/5.
• B) 0.40 or 2/5.
• C) 0.80 or 4/5.
• D) 0.90 or 9/10.
• E) 0.60 or 3/5.

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Definitions:

Decision Makers

Individuals or entities responsible for making choices after considering risks, benefits, and impacts, often in the context of businesses or organizations.

Percentage Depletion

A tax deduction method allowing businesses to account for the decrease of reserves in natural resources through a percentage of the revenue generated from those resources.

Cost Depletion

An accounting method used for allocating the cost of natural resources (like timber, oil, or minerals) over the period that they are extracted and sold.