The Larger Is the Marginal Propensity to Consume (MPC)

question 315

Multiple Choice

The larger is the marginal propensity to consume (MPC)

• A)the larger is the multiplier.
• B)the smaller is the multiplier.
• C)the smaller is the slope of the consumption function.
• D)the larger is the slope of the saving function.

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Definitions:

Market Rate

The prevailing rate at which a particular good, service, or asset is bought and sold in a free market.

Present Value

The current financial value of a future cash sum or series of inflows, adjusted with a determined rate of return.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Creditors' Protection

Legal and financial mechanisms designed to safeguard the interests and rights of creditors, ensuring they receive payment owed to them.