Assume That Autonomous Consumption Equals $200 and Disposable Income Equals

question 73

Multiple Choice

Assume that autonomous consumption equals $200 and disposable income equals $1,000. If total consumption equal $800,then the mpc equals

• A)0.2.
• B)0.6.
• C)0.8.
• D)1.0.

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Definitions:

Leverage

The ability to use something to maximum advantage, often referring to the strategic use of resources or capital.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Profitability

The financial metric used to gauge the degree to which a company or organization generates profit relative to its revenue and overall costs.

Breakeven Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, resulting in no net loss or gain.