-The Above Table Has Data from the Nation of Atlantica

question 149

Multiple Choice

$$\begin{array} { c c } \begin{array} { c } \text { Disposable income } \\\text { (trillions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Consumption expenditure } \\\text { (trillions of 2005 dollars) }\end{array} \\\hline 0.0 & 1.5 \\2.0 & 3.0 \\4.0 & 4.5 \\6.0 & 6.0 \\8.0 & 7.5 \\\hline\end{array}$$
-The above table has data from the nation of Atlantica.Based on these data, what is marginal propensity to consume?

• A) 0.75
• B) 0.50
• C) 1.33
• D) 1.00
• E) 1.50

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Definitions:

Petty Cash Fund

A minor sum of money maintained in reserve for completing instant transactions for various minor costs.

Journalize

Recording financial transactions in the appropriate book of accounts, ensuring they are officially documented.

Replenishment

The process of filling up or restocking inventory or supplies to maintain required levels.

Petty Cash Fund

A small amount of cash kept on hand for minor, impromptu expenses.