If the Multiplier Is 10,the Marginal Propensity to Consume Must

question 269

True/False

If the multiplier is 10,the marginal propensity to consume must be 0.1.

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Definitions:

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery and buildings.

Loss on Disposal

The loss incurred when the selling price of an asset is less than its carrying amount at the time of disposal.

Plant Asset

A long-term tangible asset used in the operation of a business that is not intended for sale.

Book Value

The net value of a company's assets, subtracting liabilities from the total assets; also refers to the value of an asset as per accounting records.