If the MPC Is 0

question 24

Multiple Choice

If the MPC is 0.6 and there are no imports or income taxes, the multiplier is

• A) 1.7.
• B) 6.
• C) 0.4.
• D) 0.6.
• E) 2.5.

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Definitions:

Contractual Agreement

A legally binding agreement between two or more parties outlining the terms and conditions of a business transaction.

Financial Statements

Summarized records of a company's financial activities, including the income statement, balance sheet, cash flow statement, and statement of changes in equity, which provide insights into its financial health.

Joint Control

A situation in which two or more parties have agreed upon shared control over a business activity, requiring unanimous consent for decision-making.

Joint Ventures

A commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities.