If the MPC Is 0, What Is the Multiplier

question 8

Multiple Choice

If the MPC is 0, what is the multiplier?

• A) 0
• B) 1
• C) 10
• D) 100

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Definitions:

Dividends

Profits distributed by a corporation to its share owners, regularly as a monetary payment.

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, recognizing income based on the investor's share of the earnings.

Amortizations

The act of spreading out loan payments over a period of time, including both the principal and the interest.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in producing and selling its products.