The Formula,, Is The $\frac { 1 } { 1 - \text { slope of the AE curve } }$

question 113

Multiple Choice

The formula,, is the $\frac { 1 } { 1 - \text { slope of the AE curve } }$

• A) marginal propensity to consume.
• B) marginal propensity to export.
• C) expenditure multiplier.
• D) marginal tax rate.
• E) total amount of autonomous expenditure.

---

Definitions:

Cost of Capital

The expected returns an investor requires to make an investment worthwhile, often used as a benchmark to evaluate the viability of investment projects.

Basic Assumption

A fundamental premise or underlying principle that is taken for granted in the context of a particular model, theory, or methodology.

Capital Structure

The composition of a company's funding through a mix of debt, equity, and other securities to finance its operations and growth.

Market Values

The current market value at which one can buy or sell a service or asset.