The Marginal Propensity to Consume Is

question 87

Multiple Choice

The marginal propensity to consume is

• A) another name for consumption expenditure.
• B) disposable income minus consumption expenditure.
• C) the change in disposable income minus the change in consumption expenditure.
• D) the change in consumption expenditure divided by the change in disposable income that brought it about.
• E) another name for autonomous consumption expenditure.

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Definitions:

Internal Control Procedures

These are policies and procedures put in place by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Short and Over

An account that stores any discrepancies between the expected cash count and the actual amount of cash present, reflecting errors or theft.

Other Income

Revenue generated from activities that are not part of a company's primary business operations, including interest, dividends, and gains from asset sales.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period.