Everything Else Held Constant,if Disposable Income Increases by 200 and Consumption

question 44

Multiple Choice

Everything else held constant,if disposable income increases by 200 and consumption expenditure increases by 150,the mpc is

• A)0.
• B)0.15.
• C)0.5.
• D)0.75.

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Definitions:

Capacity Level

The maximum output or production level that a facility, plant, or business can achieve under normal operations.

Net Working Capital Turnover

A ratio used to measure how effectively a company is using its short-term assets and liabilities to generate revenue.

Total Fixed Assets

The sum of all long-term tangible assets that a company owns and uses in its operations, which are not expected to be consumed or converted into cash within a year.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as stockholders' equity.