According to the Life-Cycle Hypothesis,if the Average Person Expects to Live

question 37

Multiple Choice

According to the life-cycle hypothesis,if the average person expects to live another 48 years,the short-run MPC out of unexpected changes in income is

• A)0.52.
• B)0.48.
• C)0.9792.
• D)0.0208.

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Definitions:

Standard Hourly Rate

A fixed rate paid or charged for one hour of labor or service.

Actual Output

The real quantity of goods or services produced by a business during a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing more accurate budgeting and variance analysis.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.