Given the Equations for C,I,G,and NX Below,what Is the Value

question 207

Multiple Choice

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

• A)0.2
• B)0.8
• C)1.8
• D)10

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Definitions:

Cost Price Approach

An approach to transfer pricing that uses cost as the basis for setting the transfer price.

Transfer Pricing

Transfer Pricing refers to the setting of prices for transactions between associated enterprises within a multi-entity corporate structure for goods, services, or intellectual property.

Responsibility Centers

Organizational units within a company that are managed and evaluated separately, focusing on achieving specific financial and operational goals.

Transfer Prices

Prices assigned to transactions between related entities within a multinational corporation, often for accounting and tax purposes.