The Average Propensity to Consume (APC) Equals

question 95

Multiple Choice

The average propensity to consume (APC) equals

• A) real disposable income divided by consumption expenditures.
• B) consumption expenditures divided by real disposable income.
• C) the change in consumption expenditures divided by the change in real disposable income.
• D) the change in real disposable income divided by the change in consumption expenditures.

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Definitions:

Cultural Issue

Challenges and considerations arising from the varied beliefs, practices, norms, and values of different cultural groups.

Business Judgment Rule

A principle that protects corporate directors and officers from liability for decisions made in good faith and in the belief that they were acting in the best interest of the company.

Derivative Suit

A lawsuit brought by shareholders on behalf of a corporation against third parties or insiders like directors, alleging harm to the company.

Corporate Treasury

The division within a corporation that manages the company's finances, including cash flow, investments, and risk.