Table 12-4 -Refer to Table 12-4.Given the Data in the Table Above,the

question 281

Multiple Choice

Table 12-4

-Refer to Table 12-4.Given the data in the table above,the marginal propensity to consume is

• A)0.5.
• B)0.6.
• C)0.75.
• D)0.8.

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Definitions:

Perfectly Elastic

Refers to a situation in demand or supply where quantity changes infinitely with any change in price.

Compounded

In finance, it refers to the process where interest is calculated on the initial principal and also on the accumulated interest of previous periods.

Actual Annual

Refers to the true or realistic yearly financial or quantitative performance or output of an entity or activity.

Interest Rate

The cost of borrowing money or the return for investing money, usually expressed as a percentage of the principal amount per year.