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

question 289

Multiple Choice

Equations for C,I,G,and NX are given below.If the equilibrium level of GDP is $32,000,what is the value of the marginal propensity to consume? C = 5,000 + (MPC) Y
I = 1,500
G = 2,000
NX = -500

• A)0.67
• B)0.75
• C)0.8
• D)0.9

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Definitions:

International Financial Reporting Standard

A set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to prepare public company financial statements.

Negative Net Cash Flow

Negative net cash flow occurs when a company's cash outflows exceed its cash inflows during a given period, indicating more cash is being spent than generated.

Free Cash Flow

Free cash flow is the amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Common Stock

A type of equity ownership in a corporation, with voting rights and potential for dividends.