Which of the Following Describes Marginal Propensity to Consume (MPC)and

question 128

Multiple Choice

Which of the following describes marginal propensity to consume (MPC) and average propensity to consume (APC) ?

• A)MPC is less than 1, but APC can be either greater or less than 1.
• B)Both MPC and APC are always less than 1.
• C)MPC is less than 1, but APC is always equal to 1.
• D)MPC and APC are always greater than or equal to 1.

Calculate and interpret the times interest earned ratio.

Recognize the conditions for classifying a lease as either a capital or operating lease.

Explain the amortization of bond premium and discount using the straight-line method.

Determine the carrying value and interest expense related to bonds.

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