Table 93 -Refer to Table 9

question 97

Multiple Choice

Table 9.3
$$\begin{array}{l}\text { ‡ Table } 9.3\\\begin{array} { c c c } \begin{array} { c } \text { Real } \\\text { GDP } ( \$ ) \end{array} & \text { Consumption } ( \$ ) & \begin{array} { c } \text { Planned } \\\text { Investment } ( \$ ) \end{array} \\\hline 0 & 140 & 100 \\100 & 220 & 100 \\200 & 300 & 100 \\300 & 380 & 100 \\400 & 460 & 100 \\500 & 540 & 100 \\600 & 620 & 100 \\700 & 700 & 100 \\800 & 780 & 100 \\900 & 860 & 100 \\1,000 & 940 & 100 \\1,100 & 1,020 & 100 \\1,200 & 1,100 & 100 \\1,300 & 1,180 & 100\end{array}\end{array}$$
-Refer to Table 9.3, which shows the real gross domestic product (GDP) , consumption, and planned investment in an economy. The marginal propensity to consume (MPC) in the economy is _____

• A) 0.
• B) 0.2.
• C) 0.8.
• D) 0.9.
• E) 80.

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Definitions:

Certainty Equivalent Factor

A concept used in finance to adjust the future cash flows of an investment to account for risk, essentially converting them into a guaranteed cash flow that an investor would accept in place of holding a risky asset.

Value Range

The spread between the highest and lowest values of a financial asset, indicating its volatility and potential for profit or loss.

Certainty Approach Method

A technique used in decision-making that involves evaluating the outcomes of decisions assuming that no uncertainty exists in the operational environment.

Annual Cash flows

The total amount of money being transferred in and out of a business over the course of a year.