Assume Disposable Income Increases by 10000 and Consumption Increases by 8500

question 208

Multiple Choice

Assume disposable income increases by 10000 and consumption increases by 8500, what is the value of MPC

• A)0.85
• B)0.9
• C)0.95
• D)0.5
• E)0.15

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Definitions:

Equity-Financed

Pertaining to a business or project that is funded through the sale of equity or shares rather than debt.

Price Per Share

The current market price of a share of stock in a company.

Market Value

The ongoing price that an asset or service can fetch when bought or sold on the market.

Equity-Financed

Financing obtained through the sale of company shares, contributing to the capital structure without incurring debt.