If the MPC Is 0

question 53

Multiple Choice

If the MPC is 0.6 and the tax rate is 20%,a $200 decrease in autonomous net exports will decrease equilibrium income by

• A) $384.
• B) $416.
• C) $478.
• D) $1666.

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Definitions:

Indirect Ownership Interests

Ownership in a company that is not held directly by the owner but through a chain of intermediary entities.

Sequential Consolidation Method

A process in accounting where the financial results of subsidiary companies are consolidated with the parent company's financial statements one after another, usually in the order of acquisition.

Sequence of Consolidation

The order in which different financial statements are combined during the consolidation process of a group of companies.

Total Parent Ltd Interest

The total interest held by the parent company in a subsidiary, including both direct and indirect holdings.