With Which of the Following Marginal Propensities to Consume Would

question 9

Multiple Choice

With which of the following marginal propensities to consume would a given change in disposable income have the smallest effect on aggregate demand?

• A)0.2
• B)0.4
• C)0.6
• D)0.8

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Definitions:

Synergy Value

The additional value created by combining two companies, resulting from efficiencies or growth opportunities not available to either company individually.

Cash Acquisition

A method of purchasing a company or asset where the buyer uses cash as the form of payment rather than stocks or other forms of payment.

Equity-Financed

Refers to the way of raising funds for business activities by selling ownership stakes in the company, rather than borrowing money.

Post-Merger

The period following the completion of a merger or acquisition, during which integration and restructuring processes occur.