Given the Equations for C, I, G, and NX Below

question 167

Multiple Choice

Given the equations for C, I, G, and NX below, what is the marginal propensity to consume? C = 1,000 + 0.8Y
I = 1,500
G = 1,250
NX = 100

• A)0.2
• B)0.8
• C)0.9
• D)1.8
• E)10

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Definitions:

Purchased

Refers to items or assets acquired by a company through the exchange of money or its equivalents.

Unearned Fees

Income received by a company for goods or services yet to be provided or delivered, recorded as a liability on the balance sheet until earned.

Adjusting Entry

A financial record created during the closing of an accounting cycle to appropriately distribute revenues and expenses to their respective periods.

Journalize

The process of recording transactions in a company's journal, detailing the financial activities and their impact on accounts.