A Given Change in Disposable Income Would Have the Smallest

question 65

Multiple Choice

A given change in disposable income would have the smallest effect on consumption with which of the following marginal propensities to consume?

• A) 0.2
• B) 0.4
• C) 0.6
• D) 0.8

Explain the importance of the relevant range in cost analysis.

Comprehend the principles of cost-volume-profit analysis and its significance for business decision-making.

Understand the principles of double-entry accounting and the necessity of balancing debits and credits in transactions.

Comprehend the concept and usage of contra accounts in accounting.